Herbert Smith Freehills has advised UBS Global Asset Management (UBS) on its joint venture with Grocon for the establishment of a new institutional real estate investment platform. Through the venture, UBS and Grocon aim to create a substantial property platform over the next five years.

Herbert Smith Freehills partners, Justin O’Farrell and Robert Bileckij led the team, assisted by senior associate, Matthew Farnsworth, and solicitors, Calvin Kwok and Erica Zhong.

“This tie-up has enormous potential,” O’Farrell said, “combining the massive global scope of the UBS network with Grocon’s significant pipeline and market presence.”

“The Australian real estate market has been much sought-after, particularly with off-shore investors,” Bileckij adds, “and together UBS and Grocon have the capacity to source and deliver the kind of quality product institutional investors demand.”

O’Farrell and Bileckij have worked on many of Australia’s largest real estate funds deals in recent times, including the establishment of the $2 billion Barangaroo investment trust for Lend Lease, Goodman Australia Industrial Fund’s $1 billion raising and restructure, the highly innovative Wesfarmers/Bunnings $300 million securitised leasing deal and defending the $600 million APPF Industrial Fund from an informal takeover bid by GPT.

“We are very excited by the opportunities coming out of the UBS Grocon deal,” O’Farrell concludes. “It is great to be involved in the set-up of a major new player.”

Allens acted for Grocon on the transaction.