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With the deal for Knight Frank and Bayleys to acquire a controlling stake of the real estate network now complete, the firm has provided insight into how things will run going forward.
The agreement, which saw Knight Frank and Bayleys come together to acquire 100 per cent of the share capital of McGrath by way of scheme of arrangement, was described by the network’s founder, John McGrath, as “a marriage made in heaven” when news of the acquisition first broke in March.
With McGrath shares having been officially suspended on the ASX and the scheme of arrangement implemented on 27 June, the new ownership is now in effect, with a new-look board to oversee operations.
The board of directors now comprises McGrath founder and CEO John McGrath, Knight Frank Australia CEO James Patterson, Knight Frank global head of residential Rupert Dawes, Bayleys managing director Mike Bayley, and Bayleys finance director Ken MacRae.
John McGrath continues to serve as the firm’s chief executive and managing director and retains his 23.3 per cent stake in the company.
As for the firm’s goals for the future now the new ownership is in place, McGrath revealed that the partnership was looking to “build Australia’s leading and finest real estate brand over the next few years”.
The CEO shared what he saw as the strengths that each would contribute to achieving this objective.
“Knight Frank is the most prestigious residential agency globally and provides us and our customers with instant access to the best global network and the most sophisticated international buyers in the world. Direct access to international buyers, especially high-net-worth residential buyers, is fast becoming a must-have if you want to compete in the premium end of the market,” McGrath commented.
“And over 50,000 Australians and Kiwis swap addresses across the ditch each year and they all need access to great property so one shouldn’t underestimate the value of having NZ’s leading real estate company, Bayleys, as our partner,” he added.
According to the firm, the total number of offices now operating under either McGrath, Knight Frank or Bayleys’ branding across Australia, New Zealand and the Pacific Islands totals 276.
In fact, Patterson called the partnership a “significant milestone in Knight Frank’s international expansion journey”.
“We see huge benefits in working in partnership, taking advantage of the networks and expertise of all three real estate brands to grow together, maximising our combined status as one of the top real estate networks in the nation in terms of size,” he said.
The managing director of Bayleys agreed.
“The ability to share ideas and innovation as well as systems and information will add considerable value to our customers and agents across Australasia,” Bayley said.
ABOUT THE AUTHOR
Juliet Helmke
Based in Sydney, Juliet Helmke has a broad range of reporting and editorial experience across the areas of business, technology, entertainment and the arts. She was formerly Senior Editor at The New York Observer.
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