The use of warranty and indemnity insurance in larger real-estate deals is increasing, a top lawyer said.
The observation comes from Michael Back, the
Herbert Smith Freehills partner who recently led the firm’s team that advised Propertylink on the $275m sale of 320 Pitt Street, Sydney, to ARA Australia and Straits Real Estate.
“The sale was made subject to the purchaser obtaining warranty and indemnity insurance to support seller obligations following completion. The use of W&I insurance in this way is increasing. While W&I Insurance has commonly been used in M&A transactions, in recent times, its use is becoming more common in larger real-estate transactions,” Back said.
Scheduled to settle this month, the deal ends Propertylink’s investment into the property, which it bought in June 2015 and leased to Telstra until 2020.
The HSF team that advised on the deal was jointly led by executive counsel Leone Costigan. It also included solicitor Danica Corbett.
Lander & Rogers advised ARA Australia and Straits Real Estate.
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Partner in 2016, managing partner in 2017 for HSF lawyer
