The scheme of arrangement deal will support McGrath in meeting its long-term objectives
Gilbert + Tobin (G+T) has advised the consortium of Knight Frank and New Zealand real estate company Bayleys in relation to its acquisition of ASX lister McGrath Limited for $95m.
The acquisition took place via a scheme of arrangement. The consortium is set to support McGrath on its long-term strategic objectives and maximise its upcoming growth phase.
“This transaction underscores the strength and potential of McGrath Limited, and we are confident that the consortium's expertise will drive McGrath's continued success and growth”, co-lead partner Alastair Corrigall said.
According to Knight Frank, the scheme of arrangement legally took effect on 17 June after shareholder and regulatory approvals were obtained. Implementation of the scheme of arrangement occurred on 27 June with the acquisition’s settlement.
McGrath founder and CEO John McGrath will remain as chief executive and managing director. He also holds on to his 23.3% stake in McGrath.
The new board of directors at McGrath will consist of 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.
“This acquisition represents another significant milestone in Knight Frank’s international expansion journey, allowing us to consolidate the business’ residential footprint globally, whilst leveraging our expertise and extensive reach to create enormous opportunity for McGrath and their customers”, Patterson said. “It will also allow Knight Frank Australia to continue to focus on its core business of commercial property whilst gaining exposure to the strong domestic residential market through an established brand offering attractive growth potential”.
Corrigall led the G+T team alongside fellow partner Peter Cook. They were supported by Matthew Pope and Elinor Bowman.
