The recent, successful close of 2019's largest property deal between Urbanest and Scape Australia, shows how business is adapting to working in the current COVID-19 environment.

Wissam Abwi, M&A partner at MinterEllison, and co-lead on the deal said: “Despite the challenges brought by COVID-19 in the closing weeks of the deal, the acquisition of Urbanest's large student accommodation portfolio successfully closed last Friday.”

The deal completion was run electronically over a call, which is highly unusual for a deal of this size.

Leah Wright, Property Partner at MinterEllison and co-lead on the transaction, noted the team adapted quickly to accommodate COVID-19 restrictions: “As the deal came to a close, there were logistical challenges involved in preparing documents for signing while in lockdown. All parties had to be accommodating under the circumstances, including a reliance on confirmations and undertakings.”

The successful completion of a deal of this size, augers well for other transactions that are currently, or soon to be, in play.

“Closing a $2 billion deal such as Urbanest that had complex regulatory challenges, in what were difficult circumstances, demonstrates that parties who adapt quickly to COVID-19 restrictions and work together with common purpose, will continue to complete deals in a timely manner,” said Mr Abwi.

Background

The sale of Urbanest's portfolio to Scape Australia, was the largest real estate transaction in Australia in 2019. The deal closed on May 1, 2020. Urbanest is the country's longest-standing and leading student accommodation provider; and the sale comprises of 6805 beds across 14 assets in 4 states. MinterEllison's role involved running the competitive sale process for Urbanest and negotiating and managing the complex transaction across a range of structuring and regulatory considerations.