Growth in Brisbane not finished yet, say new arrivals

The Brisbane legal market has had a bumpy 12 months, but those new to the sunshine state are optimistic that there is still plenty of opportunity, if you are in the right practice areas.

Thomson Lawyers and Henry Davis York both entered the market early last year, after devastating floods and a cyclone hit the state. Thomson Lawyers entered through a strategic alliance with a group of DLA Phillips Fox partners, ahead of the firm’s merger with global firm DLA Piper, while HDY sent Sydney staff north to service existing client work. Thomson Lawyers chief executive partner Adrian Tembel says in many way their timing was “sensible” as they entered at the bottom of the business cycle. HDY Brisbane partner John Evans says the market was a bit “slower” than what they had hoped for as a result of the natural disasters.

However, both firms have seen a dramatic improvement in terms of business in the past six months. "We'll wrap up our first year in Brisbane well ahead of our expectations,” said Tembel. "We're not sure if it is possible to have grown into Brisbane in a more effective way than we did."

The firm has been retained on two multibillion dollar infrastructure/development projects since launching; the Fitzroy Coal Terminal Project and FKP Limited's Gasworks Project (one of Brisbane's largest infill development projects covering residential/retail/office). The firm has also completed work for 15 ASX-listed companies for substantive, M&A, capital raising and strategic matters (including Domino's Pizza, Austin Engineering, CVC, Amadeus, Auzex Resources, Geodynamics, China Magnesium Corporation.

Similarly, Evans says he has seen in the later part of 2011 a definite increase in instructions coming to the firm from financial institutions in its core area of practice, insolvency. “They [financial institutions] are taking a much harder line now with their problem loans,” said Evans. “We have been busy in the past couple months.” The firm has added a local senior associate and lawyer since opening, and will be adding a Brisbane graduate in the second half of the year.

At the start of the month Middletons entered the market through a merger with local firm Flower & Hart. Managing partner Nick Nichola told ALB that the firm’s initial focus will be on energy and resources and any work connected with it including litigation and property matters. “We will be looking to grow that office through lateral recruits relatively quickly,” said Nichola.

In the long term he expects the banking and property markets to improve. “Both of those areas have been pretty depressed in Queensland in recent times and I can’t see that going on forever,” he said. “In the next 12 months I expect to see a rebound in those two sectors, to what extent, we do not know. I would expect to see M&A activity increase as well.””

Evans is also expecting a busier year in the insolvency space: “The two main legal areas of growth are insolvency and restructuring and the energy and resources,” he said. “We expect a busy year ahead and are looking to recruit a two to three year lawyer.”

Subscribe to our newsletter