John McGrath

PHOTO: John McGrath – McGrath Real Estate. FILE

Knight Frank and Bayleys Complete Acquisition of McGrath Limited

Leading global property consultancy Knight Frank, in collaboration with Bayleys, New Zealand’s largest full-service real estate company, has finalized the acquisition of Australian residential real estate group McGrath Limited. This acquisition was executed through a scheme of arrangement, which became legally effective on June 17. Following this, the quotation of McGrath Shares on the ASX was suspended on June 18, and the scheme was implemented on June 27, culminating in the settlement of the acquisition.


McGrath’s New Board of Directors

McGrath’s new board of directors includes:

  • John McGrath: Founder and CEO of McGrath
  • James Patterson: Knight Frank Australia CEO
  • Rupert Dawes: Knight Frank Global Head of Residential
  • Mike Bayley: Bayleys Managing Director
  • Ken MacRae: Bayleys Finance Director

John McGrath will continue in his roles as Chief Executive and Managing Director while retaining his 23.3% shareholding in McGrath.

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Strategic Vision and Partnership Benefits

John McGrath, the Founder and CEO, expressed his enthusiasm for the new partnership:

“We are delighted to be joining forces with two of the greatest real estate brands in the world. Knight Frank provides us and our customers with instant access to the best global network and the most sophisticated international buyers. This partnership strengthens our ability to compete in the premium market, providing unprecedented opportunities for growth.”

He emphasized the strategic importance of the partnership, particularly the synergy between Australian and New Zealand property markets:

“Direct access to international buyers, especially high-net-worth individuals, is essential in today’s market. Partnering with New Zealand’s leading real estate company, Bayleys, gives us a significant competitive advantage.”

Knight Frank’s Commitment to Expansion

The acquisition of McGrath underscores Knight Frank’s dedication to expanding its presence in Australia. According to James Patterson, Knight Frank Australia CEO:

“This acquisition marks another significant milestone in Knight Frank’s international expansion, enabling us to consolidate our residential footprint globally. It allows Knight Frank Australia to maintain focus on commercial property while gaining exposure to a strong domestic residential market.”

Knight Frank and McGrath’s combined network now boasts 171 offices across Australia, with a broader footprint of 276 offices including those of Bayleys across Australia, New Zealand, and the Pacific Islands.

Bayleys’ Role and Future Prospects

Bayleys, known for its strategic growth and innovation, views this partnership as a major opportunity. Mike Bayley, Managing Director of Bayleys, highlighted the mutual benefits:

“The partnership with McGrath and Knight Frank allows us to deliver unparalleled global reach and local expertise. This collaboration enhances our ability to share ideas, systems, and innovations, adding significant value to our clients and agents.”

Bayleys has grown from a small family business to a major player in New Zealand’s property market, spanning 105 offices and completing transactions worth over $15 billion annually. Their commitment to family values and diversification has driven their success across various property sectors.