Lovells and Clifford Chance have advised on Segro’s takeover of Brixton, which was agreed yesterday (9 July).
The deal will create a £5.5bn company – the largest industrial REIT in Europe by property portfolio value.
Lovells corporate partner Nigel Read, who led the team advising long-term client Segro alongside partner Nicola Evans, said that he thought the deal may herald further consolidation in the property sector in the “medium-term”.
“There are a number of property companies that were able to recapitalise to strengthen their balance sheets, others weren’t able to do so. I expect further consolidation as those that are able to recapitalise take over those that haven’t.”
There were additional complexities to the deal, which is expected to complete at the end of August, by an associated £250m fund-raising via a placing and open offer, which will “go ahead regardless” according to Read.
Other Lovells partners involved included US securities partner Katherine Mulhern, property partners Bob Kidby and John Condliffe, finance partners Andrew Carey and Shelley Mottershead, tax partners Kevin Ashman and Karen Hughes, employment partner Elizabeth Slattery and share schemes partner Jessica McMichael.
Clifford Chance partner Adrian Levy, who is a member of the firm’s UK REITs group, advised Brixton. He is understood to be working with corporate partner Jonny Myers on the deal.