Accelerating build-to-rent in Australia
The build-to-rent model continues to gain pace in Australia as several projects prove the local viability of this asset class. Building on this momentum requires developers and institutional investors to develop a keen understanding of the intricacies of this emerging asset class. Our Accelerating build-to-rent in Australia report outlines some of the key issues relating to tax, funding structures and solutions required for delivery.
The globalisation of the real estate market is changing the face of the sector in Australia, and providing both opportunity and increased competition for players in the industry.
An increase in foreign investment in the Australian real estate market, coinciding with a new strategy for domestic A-REITS, is altering the local landscape, as the level of demand for quality large-scale investment in Australia makes a strong comeback.
There are also significant structural changes occurring as entities such as superannuation funds and private equity firms enter the market, including domestic and overseas players. In this environment of renewed competition for quality assets, the ability to execute complex deals swiftly and successfully is essential.
Allens' pre-eminent national real estate team is recognised for its innovative approach to structuring and delivering transactions in the real estate sector, along with a strong track record on large-scale projects.
The team comprises specialists from all areas, including real estate, mergers and acquisitions, banking and finance, taxation, construction and infrastructure, environment and planning, funds management and capital markets.
We act for a wide range of top Australian and international clients and provide specialist advice across the real estate sector, including to fund managers, REITS, superannuation funds, private equity firms, sovereign wealth funds, and domestic and offshore investors and developers.
Our team members have extensive experience in the acquisition, development, financing and sale of commercial, industrial, residential and retail properties and advise on all legal issues relevant to the real estate sector.
Case study: Morgan Stanley exit from the Investa Property Group
The challenge: To achieve Morgan Stanley's commercial objectives for one of the largest real estate deals in Australia.
The solution:. To carefully scope and plan the deal with the aid of cutting-edge LPM techniques for efficient, high-quality due diligence.
The outcome: Delivering – through up-to-the-minute legal project management – a $2.45 billion sale that met our client's objectives.
Case study: Woolworths property spin-off
Phases of project: Corporate, property, regulatory
The twist: Woolworths chose an equal capital reduction, which allowed participation by all Woolworths shareholders as well as a lower approval threshold.
Benefits: Enabled Woolworths to return its focus to its core retail business.
Consider this structure when: Companies want to move a large holding off balance sheet.