Largely explained on the surge of construction in Uruguay, this practice emerged as one of the most dynamic of our firm. Taking on the good momentum of this industry we have gained visibility with the landing of landmark transactions. As more fully explained below, transactions as the setting up of a Trump Tower in Punta del Este, a US$ 60 million issuance of securities in the capital market by an equity trust in order to build two residential complexes over a shopping center under the affordable housing laws, a US$ 50 million project for building a warehouse and office building in the Port of Montevideo, the first real estate sale and lease back of rural land in the country, the financing of the acquisition of 12,000 hectares of forested land, and the refurbishing of an old estancia as a boutique hotel in the outskirts of Montevideo together with the development of a country club, illustrate the diverse nature and complexity of our works on real estate matters.
What follows is a brief description of the above mentioned matters, and of others also of importance to the Uruguayan market
- As part of our advisory services to Corporación Nacional para el Desarrollo (state owned agency specialized in development of infrastructure), our firm has been retained to render services in the structuring of a financial trust that will issue debt securities in the capital markets, the proceeds of which, estimated in US$ 100 million approx., will be forwarded to the National Institute of Colonization for the purpose of acquiring rural land for the beneficiaries of said institute (low and middle-income rural families with no access to land and/or financing for purchase of land).
- We are counselors to Mar de Hierbas S.A. (Argentine developer), in its project to construct a country club in the western outskirts of the City of Montevideo, which involves the development and sale of country sites for residential purposes for high income individuals, and of common infrastructure, and the refurbishing of an old estancia as a boutique hotel, with varied amenities.
- Our client, Lobraus Puerto Libre, made an unsolicited bid to the Port Authority in Uruguay for the construction and operation of a warehouse and office buildings in the Port of Montevideo that will harness the Free Port regime currently in force therein. This bid resulted in a competitive bidding where our client was the awardee of the concession granted by the Port Authority. Meanwhile, our client is in the process of arranging finance for this project and searching for strategic partners, in a matter valued in approx. US$ 50 million of investment cost
- We are representing PGG Wrightson Seeds, in a US$ 12 million approx. project for the design and construction of a logistic center, for the storage and processing of seeds that PGG Wrightson Seeds sells to customers. This center is set to substitute and centralize all the warehouses of our client scattered throughout the country, in a strategic location for its business (department of San José).
Our involvement includes providing advice in the hiring of engineering for the design of the logistic center, providing assistance in the permitting process and in the private bidding for a construction company, and, also, in the drafting of the relevant construction agreements.
- We advised and assisted Olam Group in the first sale and lease back transaction to occur in Uruguay comprising rural land. The transaction consisted in the sale of rural land and dairy facilities thereon (milk sheds and associated equipment, as well as other improvements over the land) owned by Olam’s subsidiaries in Uruguay, tackled with a 12-year lease back (and of a 2- year lease back period for a small part) of said land and facilities to other Olam´s subsidiaries. This transaction, of financial nature to obtain funding for further expansion of the milking business in the country, amounted to approx. US$ 53 million.
- We acted as deal counselors, structuring a financial trust that issued securities in the capital markets representing an equity participation in a project for the construction of two residential towers located on top of a new shopping center which was recently inaugurated in a strategic point of Montevideo. This was the first-ever residential complex built over a shopping center and thus the transaction posed the legal challenge to obtain tailor-made permits in the form of “air rights” to build over the shopping center and to convey in trust and securitize such rights.
Our firm structured the financial trust that issued the security – along with our structured finance affiliate, Efidus – and also acted as the legal advisor to the sponsor in this transaction of US$ 60 million value.
- We are representing the Trump Group rendering advice to Trump Tower Luxury Real Estate in the franchising of brands, trade names, business operations and processes to a group of Argentine developers in charge of building the first Trump Tower in South America (the second one in Latin America) in the exclusive resort of Punta del Este, valued at approx. US$ 100 million.