Herbert Smith Freehills advises Boral on its largest ever property transaction

Herbert Smith Freehills (HSF) has advised Australian construction materials company, Boral Limited (Boral), on the staged development arrangements for a proposed industrial logistics park with over 450 hectares of developable area in Deer Park, Victoria.  

After an extensive on-market tender process, Boral is now working with one of Australia and Asia’s leading industrial and logistics property development companies, Logos, to satisfy various conditions precedent and to finalise the plans for the long-term, staged development of the precinct.

The advice and extensive transaction document negotiation was led by HSF’s Real Estate partner, Nicholas Cowie and solicitor, Arthur Hancock. The core team also had cross-practice support from consultant, Jim Graham, special counsel on trust funds and issues, Yorick Ng, finance managing partner, Jinny Chaimungkalanont and senior associate, Mark Peters, on structuring options. competition partner, Patrick Gay, and disputes partner, Michael Lake, also supported.  

HSF partner, Nicholas Cowie, said the transaction is the most recent example of Boral implementing its plans for re-purposing a large portfolio of surplus land which will never revert to business operations, with the assistance of experienced property development and capital partners

“This is the largest property transaction Boral has ever undertaken with the sheer scale of the site at over 450 hectares of developable area, and its proximity to Melbourne’s CBD and major transport links providing a unique industrial development opportunity.

“It was a pleasure to work with Boral to lead the advice and negotiations on the arrangements for such a significant transaction for the group. The arrangements will extract value from the surplus land and in due course provide a long term, recurring revenue stream to supplement normal business operations,” Nicholas said.  

Boral’s Head of Strategic Projects, Peter Lim, said: “Nicholas and his team provided us with invaluable guidance and advice on strategy, market positions and recommendations on how to deal with legal and commercial risks throughout the project. This was often undertaken under tight timeframes.

"While there is still a long way to go before project realisation, we are excited by the sheer scale of the project and projected benefits of a world class logistics precinct in the heart of Western Melbourne, which is a key and growing industrial hub with a critical shortage of industrial supply.  This project is part of Boral’s broader strategy of repurposing surplus property to generate long term, recurring earnings.”

This deal is another example of Herbert Smith Freehills’ market-leading work in real estate transactions. HSF has also advised:

• An affiliate of City Developments Ltd (CDL) – the largest non-government-backed developer in Singapore – on its A$177.7 million acquisition of the Sofitel Brisbane Central hotel and business.
• Mission Australia on the acquisition and delivery of 130 affordable housing dwellings which form part of one of Australia’s largest urban renewal projects in Macquarie Park, NSW.
• Greenland Australia on the sale of Sydney’s Primus Hotel and business for over A$130 million;
• HThree City on its A$236 million acquisition (together with co-investor CDL) of 330 Collins Street, an A-grade commercial office tower in Melbourne;
• Atlassian in relation to an unsolicited proposal to acquire the site from the NSW Government and the partial sell down to Dexus to fund and develop and jointly own Atlassian’s A$1.4b new headquarters in Sydney.