find the latest legal job
Senior Associate - Litigation & Dispute Resolution
Category: Litigation and Dispute Resolution | Location: Melbourne CBD & Inner Suburbs Melbourne VIC
· Come work for a firm ranked in Lawyers Weekly Top 25 Attraction Firms
View details
Associate - Workplace Relations & Safety
Category: Industrial Relations and Employment Law | Location: Brisbane CBD & Inner Suburbs Brisbane QLD
· Employer of choice · Strong team culture
View details
Freelance Lawyers
Category: Banking and Finance Law | Location: All Perth WA
· Freelance opportunities through Vario from Pinsent Masons
View details
Freelance Lawyers
Category: Other | Location: All Adelaide SA
· • Qualified lawyer with a strong academic background
View details
Freelance Lawyers
Category: Other | Location: All Melbourne VIC
· • Qualified lawyer with a strong academic background
View details
Mallesons keen on German flavour

Mallesons keen on German flavour

SYDNEY-BASED Allco Finance Group utilised a complex international corporate structure to acquire a multi-million dollar German property portfolio, with advice coming from Mallesons Stephen…

SYDNEY-BASED Allco Finance Group utilised a complex international corporate structure to acquire a multi-million dollar German property portfolio, with advice coming from Mallesons Stephen Jaques.

The $565 million portfolio, comprising seven Deutsche Telecom properties, was the first major property acquisition made in Europe by Record Realty, which is managed by Record Funds Management Limited, a wholly owned subsidiary of Allco.

“[Allco] had never done a property transaction offshore before, so this was their first serious foray overseas,” lead Mallesons partner Andrew Erikson said.

Erikson travelled with Allco fund managers to Germany to conduct the contract negotiations and to oversee the work of the German law firm acting on the acquisition. This was challenging not only because of the German Civil Code, but because it coincided with the World Cup, which made travel extremely difficult. Even so, Erikson found a way to keep his spirits up.

“I went to watch Australia v Croatia in Stuttgart, which was a cracker of a game. The atmosphere in the stadium was just second to none,” he said.

One of the crucial aspects of the deal for Erikson was to ensure Australian standards for the property, corporate, tax and finance due diligence were met.

“It did throw up a few problems, in that the nature of [German] due diligence is somewhat different to the nature of our due diligence, and Allco was keen to ensure that the usual checks and balances were satisfied. Therefore, we had to push the German lawyers beyond their normal comfort zone to some extent,” he said.

Favourable UK tax law changes, which are due to come into force from 1 January 2007, will make real estate investment trusts (REITs) in the UK popular, according to Erikson. “The Australian REITs are probably the most advanced in the world, so we’re going to be relied on heavily for our expertise, I would imagine.”

Mallesons’ lawyers in Sydney, Melbourne and London were involved in contract negotiations and advice on risk management, along with establishing the corporate and financing structure. This allowed the transfer of assets from German and UK entities to the Record Realty Australian trust entity.

“Investors expect Australian fund managers to take more interest in acquiring European assets as the property investment market in Australia becomes increasingly saturated,” Erikson said.

Partners John Canning, Ken Astridge, Hal Bolitho and Erikson were supported by senior associates Simone Menz and Sally Wallwork and solicitors Jeremy Green and Ulrich Helth.

Like this story? Read more:

QLS condemns actions of disgraced lawyer as ‘stain on the profession’

NSW proposes big justice reforms to target risk of reoffending

The legal budget breakdown 2017

Mallesons keen on German flavour
lawyersweekly logo
Promoted content
Recommended by Spike Native Network
more from lawyers weekly
microphone
Oct 20 2017
Podcast: One of law’s most infamous alumni – in conversation with Julian Morrow
In this episode of The Lawyers Weekly Show, Melissa Coade is joined by The Chaser’s Julian Morrow....
protest
Oct 20 2017
High Court overturns ‘excessive’ anti-protest legislation
Bob Brown’s recent victory in the High Court over the Tasmanian government was a win for fundament...
Blocked
Oct 20 2017
Changes to Australian citizenship laws blocked
Attempts to beef up the requirements to obtain Australian citizenship were thwarted this week, after...
APPOINTMENTS
Allens managing partner Richard Spurio, image courtesy Allens' website
Jun 21 2017
Promo season at Allens
A group of lawyers at Allens have received promotions across its PNG and Australian offices. ...
May 11 2017
Partner exits for in-house role
A Victorian lawyer has left the partnership of a national firm to start a new gig with state governm...
Esteban Gomez
May 11 2017
National firm recruits ‘major asset’
A national law firm has announced it has appointed a new corporate partner who brings over 15 years'...
opinion
Nicole Rich
May 16 2017
Access to justice for young transgender Australians
Reform is looming for the process that young transgender Australians and their families must current...
Geoff Roberson
May 11 2017
The lighter side of the law: when law and comedy collide
On the face of it, there doesn’t seem to be much that is amusing about the law, writes Geoff Rober...
Help
May 10 2017
Advocate’s immunity – without fear or without favour but not both
On 29 March 2017, the High Court handed down its decision in David Kendirjian v Eugene Lepore & ...