Knight Frank and Bayleys make bid to buy out Australian real estate giant

Australian real estate industry leader John McGrath and the board of ASX-listed McGrath Limited are backing a $95.5 million buyout offer from a consortium comprising global property behemoth Knight Frank and New Zealand’s largest full-service real estate group, Bayleys.

McGrath has entered into a scheme implementation deed through which the consortium would acquire 100 percent of McGrath’s share capital by way of a scheme of arrangement.The consortium has offered to buy McGrath at 60 cents per share, which is a 27.7 percent premium on the closing price of McGrath shares the day before the announcement. Shareholders can also elect to receive an unlisted scrip alternative or a combination of both instead.

McGrath founder and CEO, John McGrath intends to elect to receive the unlisted scrip alternative for his stake, which represents about 23.3 percent of McGrath stock on issue. The McGrath board, which holds or controls about 48.1 percent of issued stock, unanimously recommends that shareholders vote in favour of the scheme — unless there is a superior proposal — and subject to an independent expert concluding the deal is fair and in shareholders’ best interests.

Under the deal, Mr McGrath would continue in his role as CEO and managing director. Mr McGrath said he was looking forward to taking advantage of the opportunities available through his new international partners, with whom he said his agency shares “common values and cultures”. Mr McGrath said the network’s franchisees, agents and customers would benefit from the consortium’s global networks, expertise and access to high-net-worth clients.

John McGrath will stay on as CEO and managaing director

The scheme is subject to conditions, including approval by McGrath shareholders at a scheme meeting, which will likely be held in June. If the scheme is implemented, McGrath will be delisted from the ASX. The McGrath board is entitled to declare and pay a dividend prior to the scheme’s implementation, in which case the scheme consideration would not be reduced by the cash amount of the dividend.

Knight Frank CEO of Australia, James Patterson, said: “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.”

Mr Patterson said the three brands would continue to operate as they are now under the deal. Bayleys managing director, Mike Bayley, commented: “The ability to share ideas and innovations as well as systems and information will add considerable value to our clients across Australasia.”

McGrath was founded in 1988 and listed on the ASX in 2015. A scheme booklet will be prepared and lodged with the Australian Securities and Investments Commission for review in due course. Meantime, shareholders can review further details in an investor presentation lodged with the ASX.

Mirvac has topped out Trielle at Melbourne’s Yarra’s Edge, with more than 70 per cent of the riverfront development sold and approximately 80 per cent of purchasers intending to make their apartment a home.

The figures, released on September 22, point to an owner-occupier audience for one of the precinct’s final residential towers. Mirvac began developing Yarra’s Edge in 2003, and its latest addition occupies one of the remaining absolute riverfront sites.

Mirvac CEO of Development Stuart Penklis said existing residents were among those moving up within the neighbourhood.

“Many purchasers already have a connection to Yarra’s Edge,” Mr Penklis said, describing buyers whose changing needs were encouraging an upgrade within the precinct.

“As one of the final residential towers within Yarra’s Edge, Trielle represents the culmination of more than two decades of creating one of Melbourne’s most established and sought-after waterfront communities,” Penklis said.

“Positioned on the Collins Street axis with absolute river frontage, Trielle offers residents a rare opportunity to enjoy sweeping views across the Yarra River, Melbourne skyline and Port Phillip Bay, while remaining seamlessly connected to the CBD. With Trielle now more than 70 per cent sold, we’re continuing to see strong demand from buyers seeking quality homes in established locations.”

The developer also flagged a penthouse and sub-penthouse collection with larger layouts, premium finishes and broad outlooks. The planned wellness centrepiece, The Oasis, encompasses a 900-square-metre elevated urban rainforest.

Mirvac General Manager Residential Development Victoria Elysa Anderson said Trielle had resonated strongly with buyers seeking a rare lifestyle offering in Melbourne.

“Opportunities to secure a new luxury residence on a riverfront site of this calibre are incredibly rare, particularly within a community like Yarra’s Edge,” Anderson said.

“What makes Trielle unique is the combination of exceptional views, world-class residential facilities and the lifestyle that already exists around it. Residents are buying into a mature waterfront community with parks, promenades, dining, wellness and strong community connections already in place.”

The 45-level tower brings a substantial new presence to that waterfront. Its residential offering spans one-, two-, three- and four-bedroom apartments, with Signature, Prestige and Sub-Penthouse collections accommodating different household sizes. The north-facing position connects the apartments visually to the river and city beyond.

Seven storeys above the promenade, the planned Oasis combines planting and a running stream with a Scandinavian-inspired wellness club developed with spa specialist Naomi Gregory. Facilities include a 25-metre lap pool, hot magnesium pool, sauna, hydrotherapy, a gym, yoga and Pilates room, and treatment spaces.

The amenity extends beyond exercise. Residents will have access to The Biblioteca library and workspaces, ground-floor work pods, and The Salone piano lounge. A private Chef’s Table dining room offers a setting for larger gatherings, while a cinema, games room and sports lounge broaden the entertaining options. Concierge services and a dog-wash area support everyday routines.

Trielle comprises a collection of one, two, three and four-bedroom residences. Reflecting strong demand from owner occupiers, approximately 80 per cent of purchasers to date intend to live in their homes, highlighting the project’s appeal to those seeking a long-term waterfront lifestyle.

Mirvac has recently delivered The Albertine, a premium apartment development on the edge of Melbourne’s CBD, and is nearing completion of Prince & Parade in Brunswick, further strengthening its portfolio of thoughtfully designed apartment communities in some of Melbourne’s most sought-after urban locations.

Knight Frank and Bayleys make bid to buy out Australian real estate giant

John McGrath announced he would remain as CEO and managing director of McGrath Limited as the real estate company’s board recommended the sale to shareholders

Mirvac’s 45-level Trielle has topped out at Yarra’s Edge, pairing riverfront apartments with wellness facilities, private dining and resident services.