In a deal recently recognised by Infrastructure Partnerships Australia (IPA), Herbert Smith Freehills advised Rothesay Life on its acquisition of the base rental stream on the Westlink M7 Tollroad from the NSW Government.

In an Australian first, the acquisition of the tollroad base rental was completed through a structured assignment of the base rental stream, using a master trust structure. Last month the deal won the Financial Excellence Award at IPA’s 2016 National Infrastructure Awards, in recognition of the deal’s financial innovation and excellence.

The transaction was made possible after the NSW Government monetised the Westlink M7 Base Rent to provide funds for new state infrastructure. Proceeds will go towards the government’s contribution to the current NorthConnex project and have helped to preserve the State's AAA credit rating.

Rothesay Life is a leading life insurer specialising in bulk annuities and other de-risking solutions for defined benefit pension schemes and insurance companies.

Late last year, Herbert Smith Freehills advised on all aspects of the transaction including structuring, due diligence, documentation and negotiations.

The team was led by partners Peter Paradise and Patrick Lowden, who were supported by senior associate Nicholas Carney and special counsel Vinh Huynh.

“This was a complex and innovative transaction – the first of its kind in Australia – which required us to work through a range of issues with Rothesay Life and the State,” Peter Paradise said.

“The result was positive for both parties and we are delighted to have advised Rothesay and assisted the NSW Government on this transaction. We congratulate NSW Treasury on receiving the IPA’s Financial Excellence Award for 2016.”

Macquarie Capital advised the NSW Government on the commercial and financial aspects of the transaction.