Major listed trusts, fund managers, investors and developers rely on the technical expertise and unique property sector understanding of King & Wood Mallesons' cross-practice team to develop commercial solutions in a rapidly changing market.
In the aftermath of the global financial crisis, commercial property in the Asian Pacific region has held up well compared to Europe and America. Across the region there are signs of recovery, as transaction volumes rebound (albeit from a low base) and significant deleveraging across the industry appears to have subdued.
Although we are yet to see a full recovery in the availability of debt and the ability to refinance, the regional market has seen extensive capital raisings, portfolio acquisitions, divestments, restructurings and the commencement of Sydney's “Barangaroo Development”, considered one of the most ambitious and significant waterfront real estate projects in the world.
At the forefront of these developments, King & Wood Mallesons has been involved in the Future Fund’s first direct real estate investment (UK), the bid and staging for Barangaroo, complex debt restructures, and some of the largest Australian leasing pre-commitments to take place post-GFC. Across these projects, clients benefited from our sector understanding and technical expertise across financing, structuring, tax, stamp duty, listings, trust licensing and more.
Although transactions remain subdued, regional investors have replaced the outflows from western investment banks, and investors in the Asia Pacific are now looking for opportunities in distressed assets. It is expected that the huge equity markets of 2009/10 and continued difficulty in refinancing will drive M&A activity, with clients calling upon our strength across practices areas (corporate, finance, competition and tax) and our ability to guide them through Australia’s foreign investment regime.
Real Estate Investment Trusts (REITs) have been hit with ballooning debt ratios, declining rentals and the continued revaluation of asset prices. As this occurred, clients have called upon our highly regarded capital markets expertise, as they take advantage of our intimate knowledge of local and international markets to quickly and successful strengthen their balance sheets and pursue growth opportunities.
The Australian market is seeing a strong movement in terms of preference and government policy towards sustainable development and a focus on investment in “green buildings”. Clients come to us for our deep understanding of this growing industry and our track record in helping to deliver innovative green real estate projects. Working with our public sector clients, we provide practical guidance on the implications of policy and legislation will have in the real estate sector and wider investment markets.
With banks reluctant to provide funding, lower leverage and higher funding costs, financing remains a challenge for those in the real estate sector. For those restructuring, clients have been able to call upon our extensive experience advising both debtors and creditors, and the track record of our multi-disciplinary team to develop commercial outcomes that support their strategic objectives.
Altogether, the real estate sector is evolving rapidly and despite recent improvements, market sentiment and conditions remain restrictive and challenging for our clients.
"King & Wood Mallesons is set apart by the simplification and timeliness of its advice ..." Chambers 2012