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Barfoot & Thompson has become the exclusive real estate partner in New Zealand for global real estate giant Savills International, headquartered in London.
Following the signing of a formal agreement on Thursday, Barfoot & Thompson has become an independent associate of Savills Australia, giving its clients preferential access to Savills' international network of more than 200 offices throughout Australia, the United States, Europe, Asia, Africa and the Middle East.
When Savills made an initial approach, it was told very firmly by Barfoot & Thompson's managing director Peter Thompson that the Auckland-based firm was not for sale.
The local firm was, however, keen to explore the possibility of establishing a working alliance with an international brand, seeing clear advantages for its commercial clients in having access to a global real estate network.
Barfoot & Thompson celebrates its 85th anniversary this year and is still owned and managed by the Barfoot and Thompson families. Anyone who knows anything about the company and its owners understands that policy is unlikely to change.
"Barfoot & Thompson had entertained [alliance] suitors before, but there had never been a good cultural fit," Thompson said. "Savills is a major player in global real estate. It is listed on the London Stock Exchange and Savills Australia has a particular strength in commercial, retail and industrial property."
According to the annual survey run by the British-based publication, Estates Gazette, Savills ranks No 4 in the world, No 3 in Europe and No 1 in Britain.
"This is based on turnover for the 2007 year and it's worth noting that Savills has retained this position for the past nine years," Thompson says.
"When Savills initiated talks with us we quickly found common ground and saw there were mutual benefits for both our client bases. We instinctively knew it would be a good fit.
"We're really excited about the potential this partnership represents."
Savills executive chairman Paul McLean says Savills was keen to develop a mutually beneficial relationship with a strong New Zealand partner.
"It's increasingly important to our business to be able to offer a seamless service, particularly across the Asia Pacific region," McLean says.
"We have large investors in Australia, Asia and beyond who are seeking quality property opportunities in this region and they don't think in terms of geographical borders. They want quality property offering good yields in politically stable markets."
John Urlich, manager of Barfoot & Thompson Commercial, says the firm's alliance with Savills elevates the company to a "full service" in relation to commercial property offerings.
"Corporate clients in particular want to have a relationship with a single provider who can find them the right site for their business regardless of whether that site is in Singapore, Sydney, or Auckland."
Urlich says McLean told him Savills regularly received inquiries from corporate clients looking for property in both Australia and New Zealand.
"Savills are looking forward to having an experienced partner on the ground here who can work with them to meet their clients' needs completely."
Although Barfoot & Thompson is largely an Auckland-based company, South Auckland commercial branch manager Peter Churchill says Savills' clients will also benefit from the company's long-established membership of the New Zealand Realtors' Network.
"The Realtors' Network is a group of independently owned, non-franchised real estate companies throughout New Zealand which each have experts in their local market. So Savills' clients will be well looked after in any geographical location throughout the country."
Churchill says the new alliance will benefit Barfoot & Thompson clients looking to divest in the current market because the relationship with Savills will now expose their property portfolios to an international audience of potential investors.
Another major benefit of the alliance is Savills' strength in the area of property market research. Barfoot & Thompson intends to move into this area, making use of some of the successful systems and templates that Savills has already developed.
"We're looking at being able to provide tailored research for key clientele on the New Zealand economy and a range of specific topics," Urlich says.
"At the same time our clients will be able to access Savills' research on the Australian market, including detailed reports on market sectors in all the major cities.
"We now have the opportunity to make use of research undertaken by world leaders in the field."
Urlich says the alliance represents the continuation of the growth Barfoot & Thompson Commercial has enjoyed over the past five or six years.
"We've built up a team of very experienced agents. Because of our favourable employment conditions we tend to attract agents when they are mid-career and performing at their peak.
"They really know how to broker a deal and go well beyond an 'order taking' level of service that can become the norm in buoyant markets.
"The majority has survived and thrived in tougher markets before and can, if required, broker transactions from the initial agreement all the way through the financing process to a structured settlement."
Churchill says he's thrilled the Barfoot & Thompson Commercial team will now have all the advantages of being part of a global alliance.
"We know they will seize the opportunities this new arrangement offers to open new doors on behalf of their clients.
"They will also enjoy the challenge and stimulation of working with major corporations to meet their property needs in Auckland and elsewhere through New Zealand."
