Russell Kennedy has advised leading independent real estate firm Allard Shelton on its merger with Gorman Commercial to create Victoria’s largest independent commercial real estate firm, ‘Gorman Allard Shelton’.
The merger, effective 1 July 2022, sees Allard Shelton, which was established in 1884 and one of Victoria’s oldest and most trusted commercial real estate brands, join forces with one of Metropolitan Melbourne’s best-known and fastest-growing firms, Gorman Commercial.
‘Gorman Allard Shelton’ now boasts $5 billion in assets under management with further plans for growth in the pipeline. On top of this, the merger sees the newly formed private-owned practice boast more than 3,500 tenancies under management, with a staff spanning 70 commercial real estate specialists across two Melbourne locations.
The firms’ existing digital assets will merge under gormanallardshelton.com.au from 1 July 2022.
The Russell Kennedy team advised Allard Shelton on all legal aspects of the merger and was led by Principal Rory Maguire (Corporate Advisory / M&A) with Associate Jaqueline Wilson (Corporate Advisory / M&A) and Rima Newman, Principal (Employment) assisting on the transaction.
Russell Kennedy Principal Rory Maguire congratulated Allard Shelton on the merger, saying:
“We are thrilled to have assisted Allard Shelton on its successful merger with Gorman Commercial. This transaction combines two market-leading commercial real estate firms to form ‘Gorman Allard Shelton’ - the state’s largest independent practice, with over $5 billion in assets under management. We look forward to watching the merged group continue to grow under the combined leadership of its founders.”
Joseph Walton, Allard Shelton Director said:
“The merger is a winning proposition and a vote of confidence in the modern-day commercial real estate sector. Gorman Allard Shelton will comprise the most experienced operators with the deepest local knowledge of their respective markets. And, as we look forward, we expect to be able to attract more of the sector’s best agents who are looking to join a competitive and contemporary private practice that puts its people and clients at the centre of everything it does.
This announcement arrives at a buoyant time for the commercial real estate sector. Victoria’s economy is rebounding and while there are myriad market influences in play, including rising interest rates and inflation, we expect commercial transactions and tenancies to deliver strong value for the short and longer-term.”
Stephen Gorman, Managing Director of Gorman Commercial said:
“The merger marks a ‘quantum leap’ for both firms. Both businesses have always had a clear desire to boost our market share across sales leasing and asset management and this gives us the perfect vehicle to continue to do so.
We are also united on an aggressive plan for further growth and we’re well positioned for acquisitions of aligned agency practices and the purchase of commercial rent-rolls. We understand the opportunity this merger creates for the firm and our clients – association with CBD-based Allard Shelton will complement hugely our specialisation and market standing across Metropolitan Melbourne.
The coming together of two leading market players creates a complete value proposition for vendors, buyers, and tenants.”
Further assistance:
For assistance regarding Russell Kennedy's Mergers & Acquisitions expertise, please contact Rory Maguire or a member of our Corporate & Commercial Advisory team.
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