Real estate lawyers who have had to suffer through reports of the upturn in the general economy finally have reason to join the celebrations as a spate of recent deals points towards a recovery in the beleaguered practice area.
“There’s a resurgence in the property industry and we haven’t seen that for a long time,” said Mallesons Stephen Jaques partner Peter Pether. “Property has turned the corner and that has been a segment of the construction market that has been dead for a long time.”
A recent deal that demonstrates the resurgence was property funds management and development company Charter Hall Group’s A$108m acquisition of Macquarie Group’s core real estate management platform. Allens Arthur Robinson advised Charter Hall on the deal, which is keeping 23 of the firm’s lawyers busy (seven are partners). Freehills is advising Macquarie on the deal while Mallesons is acting for the target responsible entities and Blake Dawson is acting for the underwriters of an associated capital raising.
Freehills’ team has also been advising Aviva Investors Asia on the establishment of the Pioneer Clarence Property Trust and the A$30m acquisition of 80 Clarence Street, Sydney.
There are signs that Australia’s property market is beginning to attract the attention of foreign investors. Invista Real Estate Investment Management recently closed a new US$85m property fund, making it one of the first Asian wholesale funds established since the economic downturn.
“After a difficult period, the market now seems to be opening up for real estate funds regionally,” said Mallesons partner John Sullivan, who worked on the deal. “We anticipate continued focus on mature markets with perceived lower risk such as Singapore and Hong Kong. Similarly, we expect continued strong interest in Australia from property investors elsewhere in Asia.”
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