Asialaw Profiles
The Guide to the legal markets of the Asia-Pacific

“Russell McVeagh is New Zealand’s market leader in banking and finance”, says one client. Highly regarded partner Guy Lethbridge is “very knowledgeable and an all round great practitioner”, adds a competitor.

The Russell McVeagh team acted for the banking syndicate on the financing of the acquisition by an Infratil / Guardians of New Zealand Superannuation consortium of Royal Dutch Shell’s downstream New Zealand assets. The US$497 million financing was New Zealand’s largest and most significant acquisition of 2010.

Another notable highlight was acting for a banking syndicate on the US$238 million expanded financing of the Britomart precinct in Auckland’s CBD. This complex transaction involved construction financing of the oriental car park and the refinancing by two separate bank syndicates under a shared security structure. This included two pools of security for the existing funding of a highly complex underlying leasehold structure.

A consistently top player in the financial sector, Russell McVeagh’s “very commercial approach and ability to deliver practical solutions” is unmatched in New Zealand, says a client.

The team consists of some of the most highly regarded practitioners in the country, with Pip Greenwood “one of the best in New Zealand” and David Hoare “a top-notch corporate practitioner”.

The firm advised on the sale of Tegel, New Zealand’s market-leading poultry producer, in a transaction that involved negotiations with a number of different vendors and stakeholders in multiple jurisdictions. The US$830 million transaction was reportedly the largest private equity acquisition in New Zealand and also one of the largest leveraged buyouts in the Trans-Tasman market in 2010.

Russell McVeagh provides “the best construction legal advice in town and is one of the best law firms in New Zealand”, says one client. The premier firm houses “top notch lawyers with a very commercial approach and ability to deliver practical solutions”, says another client. David Butler was made up to partner in late 2010.

In the last year, the firm acted for Kiwi Income Property Trust on its US$132.8 million ASB development in the Wynyard area of Auckland’s waterfront. The new ASB headquarters is one of the only major projects that will expand office space in the Auckland central business district over the next couple of years.

The firm also acted as sole property adviser to The Auckland Transition Agency that was established by the Government to amalgamate councils across the Auckland region into the new Auckland Council. This US$6.64 billion project was the most significant local government reorganisation in New Zealand since 1989.

Russell McVeagh’s outstanding dispute resolution team has continued to play a prominent role on significant and large litigation across New Zealand. Head of department Michael Herron is described as “a very safe pair of hands in commercial litigation”. Peers on the opposite side of disputes are equally gushing about Herron: “Michael is top drawer lawyer; a really good legal operator.”

The firm represented Allan and Jean Hubbard in relation to issues arising from the imposition of statutory management. The Government placed Aorangi Securities and seven of Hubbard’s other trusts into statutory management, which was followed by an investigation by the Serious Fraud Office.

Another notable highlight was acting for Mainzeal in respect of leaky building claims for a 72-unit building. This was a complex matter as land was not to be offered back on mere technicalities. Rather, consideration was to be given to the very nature of the particular public work in question.

Russell McVeagh’s established and experienced environmental and resource practice “has tremendous depth”, says a rival lawyer. Star partner Bal Matheson is “an expert in energy”, says the lawyer, and is in much demand by industry and infrastructure providers – as is the team’s wide range of experience in all areas of resource management law.

The past year saw the team represent Todd Energy on contractual and antitrust claims against Shell and OMV New Zealand in relation to rates of production from the Pohokura gas/condensate field. Shell and OMV, by majority vote of the joint venture operating committee, was alleged to have limited production below that which could be achieved from the field. This was in breach of the joint venture operating agreement as well as the Crown Minerals Act and Commerce Act.

The Russell McVeagh team also acted for Meridian, the central participant in all aspects of New Zealand’s largest electricity generator, on the restructure of the Government’s commercial interests in the electricity industry.

“A firm with great credentials, resources and capabilities”, says one client of Russell McVeagh’s TMT practice. Partners David Clarke and Pip Greenwood are “exceptionally good and very specific with their work”, adds another client.

Russell McVeagh advised Telecom New Zealand as the Crown Fibre Holding’s (CFH) ultra-fast broadband partner. This involved advising Telecom on its successful proposal to CFH to deliver the government’s national fibre network, in what was one of New Zealand’s largest TMT transactions of the year.

“Russell McVeagh’s labour and employment team is excellent,” says one client. The team has the ability to “understand the labour and employment market and incorporate the details of the law and the business”, adds the client.

Partners Richard McIlraith and Gillian Service “are both highly capable professionals and always on top of their game”, says a rival law firm partner.

The firm’s team successfully represented New Zealand Post in front of both the Employment Relations Authority and the Employment Court regarding a novel issue in the interpretation of the Holidays Act.

The team also acted for Ports of Auckland in relation to a claim for profit lost as a result of unlawful strike action. The team’s success, says the client, demonstrates that there are multiple remedies available to an employer to combat unlawful strike action, rather than just the pursuit of an injunction.

Russell McVeagh’s tax team continues to command a formidable share of the New Zealand market’s most complex, cutting edge tax work. Partner Campbell Rose is “very innovative and professional”, says one client, while a rival lawyer praises Rose’s “strong technical ability”.

The firm provided tax advice to Telecom New Zealand on its successful proposal to Crown Fibre Holdings to deliver the Government’s national fibre network. In this complex case, the Government proposed legislative amendments providing demerger tax relief specifically for this project.

The firm also advised Auckland Transition Agency in relation to the structure of the Auckland ‘Supercity’, and asset and liability transfers occurring from the amalgamation of Auckland’s council authorities.