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Maddocks breaks ground on development buy

Maddocks breaks ground on development buy

Nick Sparkes

National firm Maddocks acted on a multimillion-dollar development acquisition in Melbourne involving complex new legislation.

Firms: Maddocks under Chinese Wall (AV Jennings, Evolve and O’Brien Family)

Deal: AVJennings acquired an infill project in Melbourne’s bayside from part landowner and developer, Evolve, and landowner O’Brien Family.

Value: $350 million

Area: Development

Key players: Partner David Hartney and senior associate Nicholas Sparks (pictured) worked on the matter. Maya Park, Leigh Baring and Mick Garner also formed part of the multi-disciplinary team.

Deal significance: 

The acquisition involved a $350 million infill project under way in Williamstown.

“The development structure involved multiple landowning entities with corresponding development agreements with developer entities,” according to a statement from Maddocks. 

“Significant work was involved in understanding the profile of the existing project, including all existing sales, planning permits and intellectual property to be assigned and/or novated.”

The project was complicated by the introduction of state government legislation imposing a 3 per cent extra stamp duty surcharge on foreign purchasers.

“Under the draft legislation, the definition of foreign purchasers captured listed developers such as AVJennings, Mirvac and Stockland, who had foreign controlling interests,” the statement said.

“A significant amount of work was undertaken to lobby the state treasurer and the SRO to obtain confirmation that AVJ would not be captured by the legislation before the transaction was exchanged.”

 

 

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