Piper Alderman acts for meat processor and exporter, Zerso, on acquisition of commercial site
Piper Alderman has acted for Zerso Pty Ltd, the second largest meat processor and exporter in Australia on the acquisition of its commercial site at Homebush for $24.5 million. Trading as Melrina Meats, the company has expanded significantly and will use the site to build a brand new meat processing facility and head office headquarters with associated uses.
Melrina Pty Ltd began in 1987 as a small boning room and carton meat trading facility operating out of Botany, Sydney. Throughout the 1990’s, their services gradually expanded to the capital cities of Melbourne, Brisbane and Adelaide. In 2015, the Melrina brand took the next step in its journey with the establishment of ‘Melrina Wholesale Meats’.
Melrina Wholesale Meats had outgrown its current facility and was looking to expand its operations and establish its facilities and logistics in a strategic Sydney location. After many attempts and tenders, Piper Alderman assisted Zerso Pty Ltd to negotiate the commercial terms of this acquisition to beat a number of prospective purchasers and secured a very tight exclusive due diligence period.
Piper Alderman advised Zerso Pty Ltd on a number of complicated disclosure documents that involved contamination, environmental reports and leases. The real estate team assisted Zerso Pty Ltd with undertaking due diligence of a large volume of documents pertaining to the site, protracted negotiations of complex terms of the purchaser and completion of the transaction documents.
The contract terms were negotiated to include variation of existing leases, additional works by the vendor being required before completion, mechanism for failure to complete the works and indemnities and warranties for contamination to mitigate the exposure of risk and liabilities to third parties by our client.
Further, the acquisition was subject to finance arrangements and we assisted the client to meet the lender’s finance requirements within the settlement period.
The acquisition was successfully completed within the time required and the terms for the mechanism for failure to complete all of the works was actually utilised to protect the client’s interest.
Anthony Moss of Melrina Meats, said:
“We are very appreciative of the diligence and competence your team displayed throughout this process. You brought us to the outcome we aspired to. Congratulations on your work.
We are delighted to have secured this site and can now focus on building our future at Homebush West.
Once again, it was so re-assuring to have the team at Piper Alderman pursuing our cause on this matter – we are very grateful for the sweat, toil and expertise.”
Commenting on the acquisition, Piper Alderman Partner, Marcus Andrews said:
“I look forward to seeing this site grow with many exciting opportunities ahead.”