Offshore Real Estate Structures
In recent years, Jersey and Guernsey have capitalised on the large scale growth in property funds and other property holding vehicles including property unit trusts. A significant number of Property Unit Trusts were established in the two years up to the withdrawal of the seeding relief on 22 March 2006. Since that date, there have been a significant number of 'secondary market' trades in units in offshore property unit trusts. Offshore property unit trusts continue to be used in relation to real estate structuring and we expect this trend and the use of other offshore vehicles to continue for the foreseeable future.
Ogier
- Ogier has significant experience in the establishment and
administration of offshore real estate holding structures including
funds, unit trusts, companies and limited partnerships.
- Ogier currently administers structures holding commercial real
estate with values in excess of US$30bn.
- Ogier acted on / established in excess of 300 offshore property
unit trusts in the two year period to March 2006.
- Ogier's Real Estate Team comprises ten partners and 20+
lawyers experienced in the establishment of real estate structures,
as well as in excess of 50 highly qualified administrators who work
on offshore real estate holding structures.
Our experience includes the following transactions:
2008
- Acted as Jersey legal adviser to Qatar Islamic Bank and other
investors in the 'Shard of Glass' development project in
the London Bridge Quarter, London
2007
- Cayman Islands counsel to Morgan Stanley on the launch of its
flagship institutional real estate fund, certain feeders of which
are structured as Cayman Islands exempted limited partnerships. The
main fund invests in real estate and real estate related
opportunities throughout the world.
- Acted as Jersey legal adviser to Tishman Speyer in respect of
the sale of Daniel House and Peterborough Court, London to Jesta
Capital for £355m.
- Acted as Jersey legal adviser to Bank of Ireland Private
Banking in their acquisition from the Hercules Unit Trust of 50% of
the units in the Speke Unit Trust, resulting in a joint venture
arrangement between Bank of Ireland and Hercules Unit Trust.
- Acted as Jersey legal adviser to Safeland Active Management
Unit Trust (SAMUT) in a £50m capital investment by Babcock
& Brown into an existing JPUT structure between Safeland
Plc and Electra Partners LLP.
- Acted as Jersey legal adviser to Treasury Holdings in the
establishment of China Real Estate Opportunities Limited, a Jersey
company listed on AIM, to invest in commercial real estate in
China.
- Acted as Jersey legal adviser to Greenhills Real Estate, which
acquired over £300m of UK real estate in 2007 to create an
aggregate UK real estate portfolio of approximately £740m
(consisting of 33 properties).
- The acquisition of a London development on behalf of a NYSE
listed financial services firm for in excess of £180
million.
- The acquisition of a development site in Wolverhampton for a JV
between a major global bank and a UK based development firm for in
excess of £300 million.
- The sale of a London office building by a major UK property
firm for in excess of £100 million.
- The acquisition of the Telford Shopping Centre for in excess of
£400m on behalf of Apollo Real Estate Advisors and the
provision of administration services to the offshore holding
structure.
- The acquisition of a unit trust structure holding a portfolio
of residential property for a leading US opportunity fund for in
excess of £130 million.
- The acquisition of a London office building for a leading US
opportunity fund for in excess of £85 million.
- The acquisition of a provincial UK office building for a major
UK real estate firm for in excess of £30 million.
- Acted as Jersey legal adviser to Beacon Capital and Metlife
Investments in respect of the acquisition of CityPoint for
£650m.
- The acquisition of a portfolio of hotels from Macdonald Hotels
Limited for an approximate value of £440+ million on behalf
of Moorfield.
- The establishment of an offshore structure on behalf of Liquid
Realty to effect the investment of US$60 million in JER Real Estate
Partners II-A LP.
- The establishment of a complex Jersey structure on behalf of
aAIM to acquire a portfolio of hotels with a value of approximately
£270 million.
- Acted as Jersey legal adviser to Resolution Group on the
establishment of Jersey corporate structure to acquire various
residential properties.
- Acted as Jersey legal adviser to Mapeley Group in respect of
the acquisition of the property known as 'The Triad',
Merseyside.
- Acted as Jersey legal adviser to AMB Europe in respect of the
first acquisition of UK real estate by AMB Europe.
- Acted as Jersey legal adviser to Citigroup Property Investors
in relation to its acquisition of the Crown Glass Shopping Centre
in Nailsea, Somerset.
2006
- Acted as Jersey legal adviser to Arminius Real Estate
Opportunity Fund LP, a EURO 300 million Jersey expert fund
investing in German real estate opportunities
- The acquisition and refinancing of the Industrious portfolio of
properties of circa £460m on behalf of Dunedin Property and
the provision of administrative services to the offshore holding
structure.
- The establishment and administration of the general and limited
partners in a limited partnership structure on behalf of Catalyst
Capital LLP to effect the acquisition of the property at One
America Square London for £116 million.
- The acquisition of a shopping centre for in excess of
£190m for a large pension fund.
- The establishment and administration of Safeland Active
Management Unit Trust a joint venture opportunistic property
investment vehicle for Electra partners and Safeland plc with
initial capital resources of circa £50m.
- The sale by JER Partners of their share in Belgrave House,
London, (a joint venture with Grosvenor), to Henderson for in
excess of £127 million.
- The sale by LXB of 3 commercial properties with an asset value
of approximately £170 million and provision of ongoing
administration services to Hammerson plc.
- The establishment and administration of a complex unit trust
structure on behalf of Catalyst Capital LLP including the recent
acquisition of a large commercial property in Bristol by a newly
established unit trust.
- The establishment of a Jersey company to effect the acquisition
of a magic-circle law firm's headquarters for in excess of
£300m from a German Fund Manager.
- The establishment of a complex real estate fund for Greenhills
with the acquisition of a portfolio of properties worth in excess
of £500 million.
- The establishment and administration of an offshore structure
to facilitate the investment in a series of Jersey unit trusts on
behalf of Liquid Realty Partners at a closing NAV of
£435m.
- The establishment and administration of a complex unit trust
structure to facilitate the acquisition by a leading US opportunity
fund of a portfolio of 21 properties worth approximately £400
million.
- The establishment and ongoing administration of 9 JPUTs for a
subsidiary of a NYSE listed entity with a value of in excess of
£65m.
- The establishment of Jersey companies to effect the investment
of in excess of £82m in offshore property unit trusts on
behalf of a European public sector pension fund.
- The establishment of a Jersey company to effect the acquisition
of a prestigious central London hotel on behalf of a private
investor for a value in excess of £100m.
- The establishment of and administration of a unit trust to
facilitate the acquisition by Propinvest Holdings Limited of a
shopping centre in Paisley worth in excess of £45
million.
- The establishment of and administration of a Jersey unit trust
structure to facilitate the acquisition of UK office buildings
worth in excess of £75 million on behalf of Catalyst Capital
LLP.
- The establishment and administration of a Jersey Expert Fund on
behalf of aAIM targeted at high net worth investors to invest in
high value commercial property let on long leases to financially
strong tenants and to deal with the acquisition of an office block
in Warrington for in excess of £20 million.
- The establishment and administration of unit trusts in order to
facilitate the acquisition by the Moorfield Real Estate Fund of a
portfolio of hotels worth approximately £110 million.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.