Real Estate Finance

Financing is perhaps more important to the real estate industry than most. The link between the availability of finance and real estate asset values was all too clear during the worst of the global financial crises. Real estate continues to be an area with significant scope for growth in the Asia Pacific region with the industry facing the challenges of urban consolidation and competition for development sites, as well as the consolidation of industry participants. Recently, we have witnessed foreign interest in the Australian real estate market with many foreign players having an appetite for Australian assets. All of this suggests an ongoing demand for debt finance in the real estate sector and an active real estate finance market into the future.

Real estate finance is a strength of MinterEllison. Our real estate finance group are market leaders on all aspects of real estate financing from structuring through to dispute resolution. We advise a broad range of market participants, acting for senior and mezzanine debt providers, borrowers, issuers, sponsors and REITs.

We regularly structure and execute complex construction and development finance transactions across the residential, retail, commercial, industrial, hotel and tourism and aged care sectors, often involving joint venture or co-ownership arrangements and public private partnerships. We have had leading roles in a number of landmark urban renewal projects.

We are also active in the financing of REITs (both listed and wholesale) and managed investment schemes and have acted for the financiers in many of the significant A-REIT debt transactions (and restructures) over the past few years.

Our debt capital markets team regularly acts for real estate industry participants in DCM raisings including commercial mortgage backed securities and bond issues.

National Pension Service of Korea - Industrial Property Joint Venture

Acted for Commonwealth Bank of Australia in relation to the financing of a 50% investment by National Pension Service of Korea (NPS) into a $360 million+ industrial property joint venture with the DEXUS Property Group.

Revolving Cash Advance & Bank Guarantee Facilities - SCA Property Group

Advised on the establishment of a A$150 million revolving cash advance and bank guarantee facilities to the newly-formed SCA Property Group in connection with the spin-off of Woolworths' property portfolio in Australia and New Zealand (consisting of 69 neighbourhood, sub-regional and freestanding shopping centres) valued at approximately A$1.4 billion.

Mid City Centre Financing

Acted for Commonwealth Bank of Australia on the A$300 million financing to Fortius Active Property Trust as one of the joint venturers redeveloping the Mid City Centre in Sydney (consisting of a 32-level 38,000 sqm commercial office tower and 9,000 sqm of prime retail accommodation in Australia‚Äôs premium retail precinct, with frontage to both Pitt Street Mall and George Street in Sydney). 

Greensborough Plaza Melbourne term and revolving facilities

Acted for a syndicate of two lenders led by Westpac in connection with $234 million term and revolving facilities for the acquisition by Blackstone of the Greensborough Plaza Shopping Centre in Melbourne. The transaction involved the senior debt underwrite and sell-down to Deutsche Bank and a $25 million mezzanine finance piece, which involved complex intercreditor negotiations with the mezzanine debt provider.

Kings Square, Perth construction financing

Acted for the Commonwealth Bank of Australia in relation to the $64 million construction funding of a joint venture between the Leighton Property Group and the Seven Group for the 'KS4' commercial office development at Kings Square in Perth.