Heathrow Airport Holdings

  • General counsel: Carol Hui.
  • Team headcount: 16 lawyers.

Considered as much a business adviser as a legal one, Heathrow Airport Holdings GC Carol Hui is praised for her team’s ‘clear strategic focus’ and for navigating the company through complex transactional and regulatory issues, while reducing reliance on external legal support.

Since being taken private in a consortium led by Spain’s Ferrovial in a £10.3bn deal in 2006, the company has been enmeshed in sustained controversy regarding UK airport expansion, which has led to a prolonged legal tussle with competition authorities. Hui has been heavily involved with Heathrow’s bid to gain support for a third runway, a plan which would raise its capacity from 480,000 flights a year to a projected estimate of 740,000.

Former Slaughter and May lawyer Hui has also pushed through a substantive upgrade of a legal team that was underweight and historically focused on handling relatively low-level property matters. The team now includes recommended counsel Catherine Ledger, head of legal for operations, corporate and litigation, and Irina Janakievska, senior counsel for corporate and finance, who formed part of Hui’s team in the October 2014 sale of Aberdeen International Airport, Glasgow Airport and Southampton Airport to a consortium formed by Ferrovial and Macquarie Group for £1.05bn.

Prior to Hui’s arrival, BAA did not have a formalised roster of advisers. Having revamped the department within months, Hui effectively reduced reliance on external lawyers and keeps as much as 70% of work in-house. Cost-effective initiatives introduced for panel firms include volume rebates, while Hui has also managed to resource the department with six trainees, who are all provided by advisers. She further built up the legal function to include commercial, litigation, regulation and compliance support capabilities, demonstrating her ability to run a small team with wide responsibility, despite the regulatory complexities and multibillion-pound revenue of the company.

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Balfour Beatty

  • General counsel and chief corporate officer: Chris Vaughan.
  • Team headcount: 51 lawyers.

It would be fair to say the legal team at international infrastructure group Balfour Beatty has had a tumultuous year with three profit warnings, a chief executive exit and merger talks with rival construction group Carillion. In addition, the team dealt with the sale of its large engineering consulting business Parsons Brinckerhoff to WSP Global in the US in a deal worth £753m.

‘We’ve had a busier year corporately than I can ever remember,’ admits general counsel (GC) and corporate officer Chris Vaughan. ‘It’s been massively intense and we’re still standing, we’re still fighting. In terms of corporate activity we’ve pretty much had it all. It has been a year in which the legal function has been very prominent.’

For Vaughan, a key element of his team’s success is getting quality people properly embedded in the business, as well as proactively managing risk. The legal team also features a number of senior lawyers – notably including head of group legal Keely Hibbitt and David Mercer, GC construction services UK.

And Vaughan’s team, one of a handful credited with spearheading the sole adviser mandate structure with Pinsent Masons, also expects the same from external counsel. According to Vaughan, having Pinsents as a sole adviser has not only engaged the law firm across the business, but has significantly cut costs and added value through other improvements in service.

‘I admire the team at Balfour Beatty, mainly because they trailblazed the arrangement that we then put in place with Pinsents,’ comments Kirin Kalsi, UK head of legal at E.ON. ‘It has changed and is still changing the way we think about external counsel for advice.’

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Real estate: Macfarlanes and Clifford Chance take the lead on £370m Legal & General acquisition

Real estate heavyweights Macfarlanes and Clifford Chance (CC) have landed leading roles on one of the New Year’s first major real estate deals, after Legal & General Property acquired Bishopsgate Long Term Property Fund Unit Trust and its 24-strong portfolio of commercial properties for £370m.

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‘A testament to our strategic direction’: Naunton and Jones ditch real estate boutique dream to join King & Wood Mallesons

Senior Eversheds partners William Naunton and Clive Jones, who handed in their resignations at the start of this year with plans of launching a City boutique for high-end real estate work, will join King & Wood Mallesons in the New Year.

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Comment: Magic Circle real estate withdrawal isn’t a myth, but it’s not that simple

In a 2011 piece on the decimated real estate market in the City, we noted that few senior property partners were in their mid-40s, due to the fact that law firms largely ceased hiring junior real estate lawyers following the early ’90s crash. It looks like history will repeat itself in roughly 15 years’ time: post-credit crunch, the most established real estate practices went into hibernation. Some started to disintegrate. Either way, if you were a trainee interested in real estate around 2010, pickings were slim.

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The Last Word – Hot property

Renewed interest from international investors leading to increased deal flow means real estate practices are back in favour again. We ask leading practitioners about the future of this volatile market

 

Solemn vows

‘We’ve treated real estate like a marriage – in sickness and in health, for richer, for poorer. We haven’t reneged on our responsibilities, so when potential new clients talk to existing ones about our relationship, they hear the same thing – that we’re a committed and consistent team that has continued to deliver.’

Leona Ahmed, real estate divisional managing partner, Addleshaw Goddard

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