By Sara Zaki
Simmons & Simmons has scored a major victory at the expense of the City's magic circle firms by advising British Land on its £1.54bn property securitisation bond issue – the largest of its kind in Europe.
Banking partner John Davies is leading a team on the funding side of the deal which is secured on 12 properties, including Herbert Smith's headquarters, Exchange House, in the Broadgate Centre, London.
British Land's usual adviser, SJ Berwin & Co, led by property partner Stephen Wilson, is advising on the property aspects of the deal while Allen & Overy's (A&O's) securitisation partner David Krischer is leading the team acting for Morgan Stanley Dean Witter, the lead managers of the issue.
Krischer advised the investment bank on the previous largest issue of this kind, the securitisation of properties in Canary Wharf last summer, valued at £555m – a figure dwarfed by this deal.
Legal Week understands that Clifford Chance also pitched for the work advising the investment bank. A&O and Simmons were unable to comment on the deal.
Although Simmons has a respected securitisation practice, the market is dominated by A&O, Freshfields and Clifford Chance. Sources at these firms expressed surprise that Simmons had won the work. "I'm amazed, but good luck to them," said one partner.
The issue, which will let British Land pay off a bank debt and provide it with more working capital, is expected to spark a wave of similar deals in the property market.
SJ Berwin's Wilson admitted that his firm had limited capabilities in this area of capital markets. He said: "We have looked to expand here but it is very difficult because of limited human resources in the market."
(See market report, page 38)