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

By Bronwyn Allen
Tue, Apr 2, 2024 11:32amGrey Clock 2 min

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.



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One of Burleigh Heads’ most architecturally significant penthouses has hit the market for the first time since its completion five years ago.

The listing provides the first real look inside the two-level penthouse crowning Norfolk, Forme’s award-winning Goodwin Terrace development which was completed in 2021.

The penthouse sold off the plan for $5.35 million around 18 months before construction was completed and has remained tightly held ever since, meaning its resale offers the first insight inside one of Burleigh’s most architecturally impressive apartment buildings.

The four-bedroom residence spans approximately 461 sqm, comprising 276 sqm of internal living and a further 185 sqm of outdoor space across its two levels.

Its position on Goodwin Terrace gives the penthouse one of the Gold Coast’s comparatively rare true north-to-water aspects, with views stretching from Burleigh Headland along the coastline towards the towers of Surfers Paradise. Floor-to-ceiling glazing has been used extensively throughout the residence, framing the ocean outlook from almost every principal living space.

Forme, led by Managing Director David Calvisi, acquired the prime 1,012 sqm site, formerly home to The Fish House restaurant, before developing Norfolk as the first new multi-residential project delivered on Goodwin Terrace in around three decades.

The strength of the location was clear. The more unusual proposition was the building itself.

Forme appointed Koichi Takada Architects to design the 10-level development, marking the practice’s first Gold Coast building. Rather than treating Norfolk’s beachfront setting as a backdrop, Takada used the Norfolk Island pines along the foreshore as the basis for the architecture.

Curved balcony slabs and horizontal battens create the building’s distinctive layered exterior. Sliding timber screens can be repositioned for privacy, shade and protection from the coastal conditions, continuously changing the appearance of the façade.

Takada has compared the concept to the structure of a pinecone, whose overlapping layers open and close according to environmental conditions. In an earlier account of the project, the architect said the objective was to celebrate the site and create a stronger connection between the residences and the elements outside.

The response helped turn Norfolk into an architectural marker for Burleigh’s transformation.

Norfolk comprises 12 half-floor apartments, two dual-level penthouses and one two-level beach house. MIM Design created the interiors, Hutchinson Builders undertook construction and Plus Architecture supplied documentation services for the builder.

Inside Residence 901, MIM Design’s restrained palette brings together timber, natural stone and tailored joinery without competing with the outlook. Travertine surfaces have subsequently received paint-protection film, while the home is being offered with a custom furniture package.

A private lift opens directly into the main living level. Living, dining and media spaces are arranged along the view, accompanied by a concealed bar and a broad north-eastern terrace.

The kitchen has an oversized stone island, European appliances and bespoke cabinetry, supported by a butler’s pantry and separate scullery. An integrated RTI system controls lighting, climate, fans, security, entertainment and audio using in-home touchscreens or a smartphone application.

The principal suite occupies a private wing with ocean views, a dressing room and ensuite. Two additional bedrooms have their own ensuites, while a fourth bedroom can operate as an executive study. A concealed Murphy bed allows that room to accommodate guests when required.

The rooftop is what moves the residence beyond even a generously proportioned beachfront apartment.

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Four side-by-side secure car spaces, dedicated electric-vehicle charging and private storage address practical constraints often encountered by prestige-apartment buyers. The parking allocation is particularly relevant for owners moving from a large house or maintaining a car collection.

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The building’s reputation has also moved well beyond its beachfront address. Norfolk received both jury and popular-choice honours in the mid-rise multi-unit housing category at the 2022 Architizer A+Awards. It won a Queensland Australian Institute of Architects award for multiple housing and was named the 2022 Medium-Density Residential Development of the Year by The Urban Developer. Further recognition came from the Master Builders awards and Architecture MasterPrize.

Calvisi later said the aim with Norfolk was to produce something the Gold Coast had not previously seen.

The penthouse is being marketed through expressions of interest by Dean Pegoraro of Whitefox Gold Coast.

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