Global property consultancy Knight Frank and Bayleys, New Zealand's largest full-service real estate company, have completed their joint acquisition of Australian residential real estate group McGrath Limited, having finalized the acquisition of a controlling stake in the company by way of a scheme of arrangement.

Following shareholder and regulatory approvals, the scheme of arrangement became legally effective on June 17, with the quotation of McGrath shares on the Australian Securities Exchange (ASX) suspended on the following day. On June 27 the scheme of arrangement was implemented, with settlement of the acquisition now effected.

Founder John McGrath will retain his 23.3% shareholding in the company and remain as chief executive officer and managing director.

Aside from him, McGrath’s new board of directors will comprise 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.

Commenting on the deal, founder McGrath says his company’s partnership with Knight Frank and Bayleys allows it to achieve its goal of building “Australia’s leading and finest real estate brand over the next few years.”

“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 says.

“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.”

Private ownership

Knight Frank and Bayleys, both privately owned, have had a strategic relationship since 2018. Their acquisition of McGrath means the return of the residential real estate network to private ownership after being listed on the ASX since 2015.

For Knight Frank, the acquisition elevates Australia and New Zealand to one of the largest regions in its global network, with the number of offices in its Australian network now surpassing its UK business.

Together, Knight Frank and McGrath have 171 offices across Australia. Meanwhile, Knight Frank, Bayleys and McGrath combined have a footprint on 276 offices across Australia, New Zealand, and the Pacific Islands.

Knight Frank has more than 740 offices in over 50 markets worldwide, with more than 25,000 people. These include strategic relationships with Douglas Elliman, Berkadia and Cresa in the United States, Sumitomo Mitsui Trust Bank in Japan, and Bayleys in New Zealand.