Herbert Smith Freehills has advised Propertylink on the sale of 320 Pitt Street, Sydney to ARA Australia and Straits Real Estate for AU$275 million.
Propertylink, a listed real estate investment trust, purchased the property in June 2015. The property is leased to Telstra until 2020. The sale is scheduled to settle in July 2017.
The Herbert Smith Freehills team was led by Partner, Michael Back and Executive Counsel, Leone Costigan, with Solicitor, Danica Corbett.
Herbert Smith Freehills partner Michael Back said, ‘The speed with which we were able to complete the transaction is reflective of our experience with recent deals in the Sydney commercial property market.
Mr Back went on to explain, “The sale was made subject to the purchaser obtaining Warranty & Indemnity insurance to support seller obligations following completion. The use of W&I insurance in this way is increasing. While W&I Insurance has commonly been used in M&A transactions, in recent times, its use is becoming more common in larger real estate transactions.’
ARA Australia and Straits Real Estate were advised by Lander & Rogers.
This deal is another example of Herbert Smith Freehills’ market-leading work in the real estate sector. Other recent examples include:
- advising LaSalle Funds Management in the sale of two major Sydney large format retail centres for AU$436 million to Aventus Retail Property;
- advising QIC in relation to the sale of QIC’s 50% interest in the MLC Centre for AU$722.5 million to Dexus;
- advising Lendlease on the AU$140 million development of the commercial office building known as 5 King in the Brisbane Showgrounds precinct in Fortitude Valley, acquired by Impact Investment Group;
- advising Growthpoint Properties Australia on the sale of an industrial property portfolio for AU$142.2 million to Singapore-listed Mapletree Logistics Trust.