Recent activity by real estate investment trusts has provided a boost to law firms’ property practice groups, which have been among the hardest hit by the GFC. The recent A$365m acquisition of the ASX-listed Mirvac Real Estate Investment Trust (MREIT) by Mirvac Group follows on from Lend Lease Investment Management’s launch of a A$200m institutional fund and Challenger Life Company’s (CLC) proposed A$157m acquisition of Challenger Kenedix Japan Trust (CKT).
As well as property groups, an increase in activity by A-REITs would have a significant impact on the workloads of banking groups, corporate groups and M&A groups. Clayton Utz and Minter Ellison advised on the Mirvac deal, which provided Minters with enough work to keep four partners, four senior associates and six other lawyers busy.
“I think what we’ve seen in the last 12 months is a recapitalisation of the A-REIT market,” said Minters partner Stuart Johnson, who worked on the Mirvac deal. “Those entities that have been able to raise capital and strengthen the balance sheet have done so and are now well-placed to take advantage of opportunities in the market.”
Mirvac has been a Minters client for the past seven years and the firm advised Mirvac on its A$500m equity raising in November 2008 and the A$1.1bn raising in June last year. Now that those capital raisings have been largely completed, Johnson hopes that more property transactions will take place.
“Last year, there wasn’t the volume of property transactions coming through but I think valuations have potentially readjusted now and we’re hoping that 2010 will provide an uptick in property transactions,” Johnson said. “We’re certainly hoping that, with debt markets shoring up a bit, property transactions will return in 2010.”
| Deal | Legal advisors |
| Mirvac - MREIT acquisition | Clayton Utz, Minter Ellison |
| Lend Lease Investment Management fund launch | Freehills |
| Challenger - Challenger Kenedix Japan Trust acquisition | Allens Arthur Robinson |
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