Deal Profile | Gadens advises Cbus Property on financing of Collins Arch

Gadens has advised Cbus Property on both the syndicated construction financing and the long term post-construction financing of the Collins Arch Project in Collins Street, Melbourne. The construction financing was provided by NAB and ANZ and the post-construction financing will be provided by Clean Energy Finance Corporation (CEFC).

Located in the heart of the Melbourne CBD, Collins Arch will be a globally significant building occupying an entire city block on Collins Street. At ground level, public open space, retail and restaurants will compliment Collins Street’s list of high end amenities. While the W Melbourne Hotel will occupy lower levels of the eastern tower, luxury one, two and three bedroom apartments crown the development, occupying the highest floors of both towers and are oriented to maximise views towards the Yarra River and Port Phillip Bay. Northern aspects will feature city skyline views and vistas along Collins Street. The anticipated completion of the project is late 2019.

Firms involved in the construction financing: Gadens (Acted for Cbus Property), Ashurst Australia (Acted for ANZ and NAB as Financiers), Allens Linklaters (Acted for ISPT)

Firms involved in the post-construction financing: Gadens (acted for Cbus Property) and Ashurst Australia (acted for CEFC, as Financier)

Deal area: Banking & Finance

Practice groups involved: Banking & Finance and Real Estate

Key team members: Gadens Partner Doug Scobie (Banking & Finance) led the team, assisted by Matthew Trinca (Senior Associate) and Harveen Dhaliwal (Lawyer)

Deal significance:

Gadens advised Cbus Property on the construction financing and the post-construction financing of the Collins Arch Project. The construction financing was under a syndicated facility in which NAB and ANZ were Lenders. ISPT is a co-investor in the project with Cbus Property. 

Under the post-construction financing, CEFC will provide a ten year, forward-start financing, with financial close set to take effect on or after practical completion of the Project, in late 2019. 

The financing and security arrangements were complex for a number of reasons including the size and multi-faceted nature of the development, the number of counterparties involved in the Project including Multiplex (as builder), key tenants (including a number of leading law firms) and Daisho as purchaser of the hotel. In addition, the due diligence conducted by the Lenders for the construction financing was extensive including on the various ownership and underlying property and contractual arrangements. There were also various clean energy related terms and provisions negotiated as part of the post-construction financing with CEFC.