Firms: Herbert Smith Freehills (Propertylink); King & Wood Mallesons (Deutsche Asset Management)
Deal: Propertylink has sold two of its industrial properties in Victoria and Queensland.
Value: $73.1 million
Key players: The Herbert Smith Freehills team was led by partner Michael Back (pictured) and executive counsel Leone Costigan, with assistance from partner Phillip McMahon, consultant David Stitt, Greenwoods & Herbert Smith Freehills director Daniel Sydes and solicitor Danica Corbett.
Deal significance: The Victorian industrial property is located in the outer Melbourne suburb of Derrimut, while the Queensland industrial property is located in the outer Brisbane suburb of Parkinson.
The Derrimut property sold for $36 million, while the Parkinson property sold for $37.1 million.
Both properties were refrigerated logistics warehouses tenanted by Rand Refrigerated Logistics, and were owned in a trust structure set up to meet Islamic financing requirements when the properties were originally acquired. The trust will close following the sale.
According to Herbert Smith Freehills partner Michael Back, his team advised on complex legal arrangements to ensure that the trust was terminated in accordance with the original Islamic financing arrangements to ensure a clean return of capital.
Furthermore, he noted that his team advised on the preparation, negotiation and completion of the sales contracts.
“We were delighted to advise Propertylink on these two sales, which had been among the most significant industrial deals so far this year,” Mr Back said.
“The sales are a sign of what’s to come in the industrial property market for 2017, with investors taking a strong interest in the sector.”