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Direct Capital invests in Bayleys Corporation Limited
11/06/2010

Leading New Zealand real estate agency and professional property services provider Bayleys Corporation Limited (“Bayleys”) has this week successfully completed the first stage of a major expansion programme which will see the company significantly increase the scope and scale of its operations throughout New Zealand.

To support this continued growth, Bayleys has brought in a new shareholder, Direct Capital, to invest a minority shareholding in the business. 

The growth programme will be based around increasing the scope and depth of agency services Bayleys provides for its clients throughout New Zealand – particularly in property management, valuation services and funds management. 

Bayley Corporation managing director Mike Bayley said this expansion had already commenced with the growth of the company’s valuations team in Wellington, and increasing turnover from the firm’s steadily developing commercial property management group. 

“The board of Bayleys and I are excited about the future growth opportunities that we have.  The capital that comes from our new partnership with Direct Capital will help us act on these opportunities,” Mr Bayley said. Direct Capital is a well known investor in private companies having invested in 36 companies since its first fund was raised in 1994.  The investment in Bayleys will be from its latest fund, Direct Capital IV, which raised $325m during 2009, with cornerstone investment from the New Zealand Superannuation Fund.

Direct Capital invests into private companies to provide the capital to grow and continue creating value.  Direct Capital has invested in such companies as Fishpond, New Zealand King Salmon, GoBus, Shears & Mac4, Rodd & Gunn, Stratex, EziBuy, Ryman Healthcare, and Max Fashions.

The investment from Direct Capital will be used exclusively for expansion initiatives across those companies coming under the Bayley Corporation umbrella – most notably Bayleys Realty Group, Bayleys Property Services, Bayleys Valuations and Consultancy, and Bayleys Real Estate agency operations.

“Bayleys is a company that Direct Capital has followed over a number of years, and a company that has continued to perform exceedingly well through this cycle - confirming the strength of its brand, outstanding management, and market position in New Zealand,” said managing director for Direct Capital, Ross George.

The professional property management and services sector is a significant part of the economy and Bayleys is fast emerging as the leading service provider within this market.

Our investment in Bayleys not only provides the capital to fund the company’s continuing growth but it also broadens the shareholder base from the family to include institutional capital - an important feature of Bayley’s longer term plans,” Mr George said.

The Bayleys family will continue to be the majority owners of the company and its existing board will be joined by Mr George. 

 Mike Bayley said “the real estate agency and professional property services markets would see a growing Bayleys presence across the wider property sectors – truly enhancing the company’s brand promise of being New Zealand’s leading full-service real estate agency.”

”There would be no change to the day-to-day operations of the company other than staff and clients would begin to see a wider range of product and services being offered by the company - all of which would significantly enhance Bayleys’ current offerings.