This article is from the Australian Property Journal archive
AGENTS Knight Frank and Bayleys have teamed up to buy listed real estate agency McGrath Limited, with founder John McGrath set to stay on as CEO and managing director.
McGrath Limited will be 100% acquired by the consortium of Knight Frank and Bayleys, entering into a Scheme Implementation Deed, after being unanimously approved by the McGrath board.
McGrath will no longer be an ASX listed company, but excluding this the agency plans to continue operations, business as usual.
“We are delighted to have received this offer from a consortium comprising a leading global property firm in Knight Frank, which has a strong residential real estate offering throughout the world, and leading New Zealand full-service real estate agency in Bayleys,” said McGrath.
“Together we share common values and cultures and see the potential partnership with McGrath as a positive development for our industry, and for McGrath agents, team members, franchise partners and customers, who will benefit from the Consortium’s global networks, access to high net worth clients and real estate expertise in support of our vision and growth plans.”
The scheme will see McGrath shareholders have the option to receive $0.60 cash per share, or an unlisted scrip alternative, or a combination of both. With the board currently holding or controlling approximately 48.1% of the issued McGrath shares.
With John McGrath announcing he intends to elect to receive the unlisted scrip alternative for all his McGrath shares, retaining a 23.3% exposure in McGrath.
“My role as CEO will continue and, if the Scheme is approved, I look forward to continuing to work with the great team at McGrath but also in taking advantage of the opportunities afforded by international partners Knight Frank and Bayleys,” added McGrath.
The board is unanimously recommending shareholders vote in favour of the scheme, subject to certain conditions, including approval by McGrath shareholders at a scheme meeting.
With implementation of the scheme is anticipated to occur before 30 June 2024.
“The acquisition would allow Knight Frank to have a leading position in Residential and Commercial real estate in Australia, creating a full service real estate capability to support and advise clients and customers,” said James Patterson, CEO of Knight Frank Australia.
“This partnership would see all brands operating as business as usual. Working together, these teams will create a powerful combination of local expertise with global reach, which will generate enormous opportunity for McGrath and its customers.”
“Bayleys views the partnership with McGrath and Knight Frank as a collaboration of leading real estate companies servicing markets on both sides of the Tasman whilst providing unprecedented global reach. The ability to share ideas and innovations as well as systems and information will add considerable value to our clients across Australasia,” said Mike Bayley, managing director at Bayleys.
