Allocating Risk in Real Estate and Infrastructure Transactions: Traditional Indemnities and the Quickly Evolving Role of Reps and Warranties Insurance and Tax Insurance
Inherent Risks in Real Estate and Infrastructure Transactions; Negotiating the Purchase Agreement to Apportion Risk; Best Practices When Employing Transactional Insurance Coverage

Course Details
- smart_display Format
On-Demand
- signal_cellular_alt Difficulty Level
Intermediate
- work Practice Area
Real Property - Transactions
- event Date
Thursday, October 24, 2024
- schedule Time
1:00 p.m. ET./10:00 a.m. PT
- timer Program Length
90 minutes
-
This 90-minute webinar is eligible in most states for 1.5 CLE credits.
This CLE webinar will provide practitioners with a comprehensive overview of risk allocation in real estate and infrastructure transactions, including through traditional indemnities, representations and warranties insurance (RWI), and tax insurance. The panel will describe the principal risks, including applicable tax issues, specific to real estate and infrastructure transactions, while comparing traditional indemnities with transactional risk insurance.
Faculty

Mr. de Boisblanc is a leader, expert and innovator in the transactional risk insurance industry. He brings a wealth of experience advising purchasers and sellers in M&A transactions and GP-led secondary transactions on representations and warranties insurance (RWI) and related insurance products. Mr. de Boisblanc’s prior experience includes holding a senior position on AIG’s M&A insurance team, where he personally underwrote more than 150 RWI policies and practicing law at Ropes & Gray, a leading global law firm, where he advised private equity clients with respect to the placement and negotiation of RWI policies.

Mr. Graham is a tax lawyer with 23 years of experience specializing in private equity and corporate tax/M&A. He began his career as a tax associate at Clifford Chance in New York then was in-house tax counsel for the private equity businesses at Merrill Lynch and Bank of America. Prior to that, Mr. Graham was an international tax partner at EY in their financial services organization and later was the US Tax Director at Antin Infrastructure Partners, a European-based private equity firm focused on the infrastructure space. He currently consults for private equity and infrastructure funds and assists with tax due diligence and structuring. Mr. Graham has worked extensively on infrastructure transactions, including with respect to acquisitions of renewables projects and target companies in the energy, environmental, telecommunications, and transportation and logistics sectors.

Mr. Nelson’s transactional practice focuses on representing corporate users of real estate in purchase and sale, leasing, construction, transactional due diligence, and ancillary real estate contract negotiations. He has deep experience in the acquisition, disposition, leasing and construction of office, industrial, GMP facilities, R&D facilities, and properties for the unique needs of clients in biotech, agtech, foodtech, electronics, robotics and autonomous vehicle development. Mr. Nelson has represented clients in numerous complex leasing and subleasing transactions and construction projects for millions of square feet of space, including multi-phased deliveries, sublease to direct lease roll overs, build-to-suit leases, and lease and sublease terminations and restructurings. He also has extensive experience in drafting and negotiating all types of ancillary agreements related to the transfer, use, construction, and ongoing operation and management of real property, including joint use agreements, transitional service agreements, easements, architect and construction agreements, listing agreements, and management agreements. He also uses his significant experience with corporate real estate to advise the firm's clients in due diligence investigations and negotiations ancillary to corporate mergers and acquisitions.
Description
The parties to real estate and infrastructure transactions are tasked with apportioning often complex risks amongst themselves. Our expert panel will discuss the various risks involved in these transactions, with a focus on tax-related risks, as well as traditional indemnity structures.
RWI and tax insurance, once primarily used in M&A transactions, are increasingly used in real estate and infrastructure transactions, especially in complex transactions. RWI protects parties against financial losses arising from inaccuracies made in the seller's representations and warranties in the purchase agreement where traditional methods of risk allocation and risk management may not be sufficient for complex transactions. A related product, tax insurance, can protect against specific, identified tax risks, such as failure to comply with REIT requirements or uncertainties relating to the tax credits introduced by the Inflation Reduction Act.
Counsel should understand for which transactions they should recommend transactional risk insurance to their clients and be aware of the pros and cons for buyers and sellers. Counsel should also understand how RWI or tax insurance may impact the due diligence process and how to ensure the purchase agreement and insurance policy align with the parties' expectations.
Listen as our expert panel provides a comprehensive overview of transactional risk insurance, including when transactional risk insurance should be considered for a transaction and the risks and benefits of insurance for all parties.
Outline
- Overview of the principal risks in real estate and infrastructure transactions
- Complexity inherent in transactions involving private equity funds and related investment structures
- International and cross-border transactions
- Minority investments and co-investments
- Tax-specific risks
- REITs
- Renewable tax credits
- Fund-level risks
- Traditional risk allocation in real estate and infrastructure transactions
- Advantages of transactional risk insurance products
- Best practices when negotiating coverage and exclusions
- Disputes
- Recoveries under a traditional indemnity structure
- Insurance recoveries under RWI and tax insurance policies
- Practitioner takeaways
Benefits
The panel will review these and other important issues:
- For which real estate and infrastructure transactions should counsel encourage their clients to purchase RWI or tax insurance?
- What are the benefits of transactional risk insurance for sellers? Buyers?
- What are the risks of transactional risk insurance for sellers? Buyers?
- What are the best practices for negotiation of coverage and exclusions in RWI policies and tax insurance policies?
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