KCL Law recently advised a syndicate led by Payton Capital and comprising offshore institutional investors on an $80 million senior syndicated facility for the Australia 108 development — Australia’s tallest high-rise tower. The financing was used in part to refinance the previous construction financing for the development.
Located in Melbourne’s Southbank, Australia 108 is being developed by World Class Global — a subsidiary of Singapore’s Aspial Corporation. With 101 levels and over 1100 apartments, the construction for Australia 108 is shortly due for completion by its builder, Multiplex.
The structuring for the financing was complex, involving:
- implementing a syndicated loan note issuance structure in order to fall with the exemptions for Australian withholding tax;
- incorporating an accordion feature to allow increases in the overall commitment in the future, at the option of each lender;
- comprehensive security release mechanism to allow prompt discharge of security over lots due for settlement and separately, when ongoing valuation covenants are met;
- the contemporaneous registration of mortgages over 261 separate titles via PEXA at settlement (by using linked settlement across multiple workspaces and working closing with the transaction counterparties and PEXA); and
- complex negotiation with other secured lenders to the Project in order to reach an agreed set of intercreditor terms.
The transaction was led by our Banking and Finance team who were also supported by our Property team led by Morgan Scholz, Head of Property, and our Construction and Infrastructure team led by Darren Cain, Principal Lawyer and Head of Construction and Infrastructure. KCL Law also worked with James Ye, ShineWing Australia, in connection with advising the lenders on certain taxation issues.
Aspial was advised by Allen & Overy (in respect of the financing) and Maddocks (with respect to property aspects).
KCL Law was delighted to advise arranger Payton Capital, and the senior finance parties, in connection with this multifaceted, landmark transaction for our client.
For more information
For more information, or to arrange an interview, please contact Stuart Giles, Business Development & Marketing Manager, sgiles@kcllaw.com.au or (03) 8600 8822.