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

Noted by a rival firm as “clearly the leader in Japan’s real estate market”, Morrison & Foerster comfortably remains in the top tier for another year. The firm houses veterans Keisuke Mochizuki, Theodore Seltzer, Eric Piesner and Andrew Morrison, and the four-partner team can provide Japanese and US law advice on all aspects of the real estate investment cycle. “They are able to muster resources successfully to address any issues that we have a ticking clock for,” says one client. Another has kind words for Piesner: “He is knowledgeable, responsive and detail-oriented while remaining business friendly.” Some of the firm’s key clients include Nomura Real Estate Investment Management, Union Investment Real Estate, Carlyle, Morgan Stanley and Rockpoint Group.

Skadden has had a strong showing in the real estate market over the past year, advising clients on different real estate investment matters. Some of the work highlights include acting for Japanese private equity fund Asuka DBJ Partners in the financing of an office and retail property in Beijing, and representing Aozora Bank in the financing of a Japanese distressed loan portfolio. Apart from financing work, the team has also been busy establishing investment platforms and restructuring debt for various clients. Audrey Sokoloff, Paul Huff and Masahiro Shiga are key contacts in Tokyo.

Most firms in Tokyo specialise in either real estate or construction, but the six-partner team at White & Case has an equally strong offering in both areas. This enables it to capture a top tier ranking this year. On the real estate side, a team led by Tetsuya Morimoto worked closely with the firm’s tax group on many real estate fund issues. One example saw the firm advise Shinsei Bank in the largest financial restructuring in Japan in 2010. This was in connection with the bank’s financing of subsidiaries of Morgan Stanley Real Estate Fund VI for the acquisition of the ANA Hotels portfolio. Partner Mark Goodrich is in charge of the construction practice, and he was kept busy by an offshore construction contractor in a dispute against an oil exploration company in ICC arbitration proceedings in Dubai.

“The people that I work with at Orrick are very smart. They’re very accessible, responsive and thorough in terms of looking at documentation, so we fully rely on their advice and their opinions regarding all sorts of documents,” says one client on the firm’s real estate practice. Notable transactions handled by the team include advising Parkway Life Reit in the acquisition of six nursing home and care facility properties in Japan, and acting as counsel to Prudential Mortgage on its debt financing to a property trust formed by a J-Reit. Partner James Tervo returned to the Tokyo office from Hong Kong in 2010 and the team is further strengthened by the joining of Yuko Ino as of counsel from Morrison & Foerster in January 2011.

Ashurst’s established projects and energy practice has generated much construction work for the integrated energy, transport and infrastructure group led by partner Rupert Burrows. For example, Burrows is leading a firm team advising Mitsui & Co and Sumitomo as EPC contractors on power projects in Thailand and Malaysia respectively. The firm is able to act on real estate deals as well, and it is assisting a Singapore investment company on its acquisition of hotels in Tokyo through a special purpose vehicle.

Despite the low level of activity in the market, the real estate team at Clifford Chance still worked on a number of high profile property acquisitions and financings for its clients. These included the acquisition of an office building in Tokyo by RREEF. Bengoshi partner Eiichi Kanda has attracted much praise from clients. “Kanda definitely can think outside the box, is very flexible, [and] quick at getting concepts and finding solutions.” Peter Kilner and Leng-Fong Lai are also recommended.

Drawing on its expertise in banking and structured finance, Linklaters is getting more market recognition for its finance and funds work. “The firm has good experience and expertise in real estate financing in Japan,” says one client. Its ability to advise on Japanese and foreign law is another asset highly valued by clients. In the past year, the team has advised on deals that involved complex structures and intensive negotiation.

Paul Hastings traditionally has a solid reputation in the real estate sector. However, the firm has suffered some recent departures, including the move of Ayako Kawano to White & Case, which may have caused some instability to a team that is headed up by Joshua Isenberg. Nonetheless, the firm still has its fair share of work. For example, long term client Osaka-based Sekisui House, the largest home builder in Japan, has been working with Isenberg on a range of joint ventures and acquisitions overseas, especially in the US.