Allens acts on $12 billion real estate investment trust merger

Allens has acted for Federation Centres in its recent merger with fellow real estate investment trust Novion Property Group.

The merger was effected by way of a company scheme and trust scheme, which were overwhelmingly approved by Novion Property Group securityholders. The schemes were implemented on 11 June 2015, at which time Federation Centres acquired all Novion Property Group securities in exchange for the issue of new Federation Centres securities to Novion Property Group securityholders.

The merger has created one of Australia's largest real estate investment trusts, with a market capitalisation of approximately $12 billion, and with over $22 billion in assets under management. Shopping centres owned by the group include Chadstone and Emporium in Victoria, Chatswood Chase and DFO Homebush in New South Wales and Galleria in Western Australia.

The Allens team on the matter was led by Partner Craig Henderson. Craig said that the Allens team was proud to work with Federation on such a significant transaction.

A separate team led by property finance specialists Warwick Newell (Partner) and Lisa Zhou (Senior Associate) acted for the financiers to achieve the refinancing of the merged group's existing bank debt facilities of approximately A$5.1 billion. Following the scheme implementation, the debt documentation structure of the merged group takes the form of a club style arrangement, with separate bilateral facilities bolting onto a common provisions agreement.

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