Herbert Smith Freehills has advised Propertylink on the sale of two industrial properties in Victoria and Queensland worth a combined total of A$73.1 million.
Located in the outer Melbourne suburb of Derrimut and the outer Brisbane suburb of Parkinson, both properties are refrigerated logistics warehouses tenanted by Rand Refrigerated Logistics. The Derrimut property sold for A$36 million and the Parkinson property sold for A$37.1 million.
Both were owned in a trust structure set up to meet Islamic financing requirements when the properties were originally acquired. The trust will be wound up following the sale and Herbert Smith Freehills advised on complex legal arrangements to ensure that the trust was terminated in accordance with the original Islamic financing arrangements and ensure a clean return of capital. The firm also advised on the preparation, negotiation and completion of the sales contracts.
Partner Michael Back and executive counsel Leone Costigan led the Herbert Smith Freehills team, supported by partner Philip McMahon, consultant David Stitt, Greenwoods & Herbert Smith Freehills director Daniel Sydes and solicitor Danica Corbett.
Michael Back said: “We were delighted to advise Propertylink on these two sales which are among the most significant industrial deals so far this year. 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.”
Westpac was the outgoing financier and the purchaser was advised by King & Wood Mallesons.
The deal is another example of Herbert Smith Freehills’ market-leading work in the Real Estate sector. Other recent examples include:
• advising Growthpoint Properties Australia on the sale of an industry property portfolio for $142.2 million to Singapore-listed Mapletree Logistics Trust;
• advising M&G Real Estate Asia PTE on the acquisition of Casey Central Shopping Centre south east of Melbourne;
• advising Coles on the sale of Coburg North village in Melbourne’s inner north;
• advising ANZ on the sale of its landmark Melbourne Queens Street building for A$274 million; and
• advising Propertylink on its purchase of an industrial warehouse in Western Sydney for A$46.6 million.