G+T has acted for ANZ Banking Group, MUFG Bank, Standard Chartered Bank and United Overseas Bank (the mandated lead arrangers, underwriters and bookrunners) on the financing of ESR Milestone Partnership’s (a partnership between ESR and Singapore’s sovereign wealth fund GIC) A$3.4 billion acquisition of the Milestone Logistics Portfolio from Blackstone.
This transaction represents the largest direct real estate acquisition by deal size in Australian history and encompasses 45 high quality, income-producing assets across Australia’s major capital cities. With a land area of 3.6 million sqm and gross lettable area of 1.4 million sqm, the Milestone Logistics Portfolio boasts a very high-quality customer base consisting of national, multi-national, ASX listed or government clients and provides significant scope for further development.
The portfolio will be owned under the newly-formed ESR Milestone Partnership (EMP) with the portfolio to be managed by ESR Australia.
G+T was instrumental in structuring and documenting the bespoke financing terms which provide for a Common Terms Deed with an underwritten Syndicated Facility Agreement and common security package under a security trust, which provides flexibility for future debt raising by way of loans, bonds or US Note issuances.
The transaction is the largest direct real estate acquisition in Australian market history, and the largest real estate acquisition anywhere in the world this year. G+T was able to utilise its wide-ranging leveraged and real estate finance industry experience to successfully complete this transaction efficiently and quickly.
The G+T team was led by Banking + Infrastructure partner Stuart Cormack who commented, “It was a privilege to work with ESR Australia and its lenders in financing on this acquisition which represents a watershed transaction for Australian logistics assets. We are very pleased to have assisted them in structuring an innovative and transformational debt package which will be key to their business plan.”
Stuart was supported by lawyers James Lee, Shauna Mainprize, Lee Lancaster and Catrina Chen.
Gilbert + Tobin’s Banking + Infrastructure team is recognised in the leading legal directories, including most recently being ranked at Band 1 for Banking and Finance – Acquisition Finance and Banking and Finance – Corporate Finance by Chambers Asia-Pacific 2021 and Tier 1 for Banking & Finance, Project Finance and Restructuring & Insolvency by Legal 500 2021. G+T has significant experience advising leading Australian and international financial institutions, investment banks, corporations and private equity funds. We act for lenders, borrowers, sponsors and consortia on a range of issues from high-value corporate transactions to complex restructuring projects.