According to a recent economic forecast, Brisbane is set to be the world’s fastest growing city over the next eight years. Claire Chaffey examines four law firms making the most of the unprecedented opportunities in Queensland

Over the past 12 months, Freehills’ Brisbane office has undergone quite a growth spurt.

In just one year, the firm’s numbers on the ground have grown by 30 per cent, and revenue has been increasing by around 15 per cent year-on-year in recent times.

It is significant growth driven by client demand and the head of Freehills’ Brisbane office, Michael Back, says he can’t see it dying down any time soon.

For homegrown Brisbane firm McCullough Robertson, the decision to start a “pit to port” energy and resources practice more than 20 years ago is certainly paying dividends now, while for GRT Lawyers managing director Glenn Vassallo, the booming resources and technology space in Queensland has opened new and untapped opportunities.

Corrs Chambers Westgarth is also riding the wave of increased foreign investment and plans to continue the growth that has dominated its Queensland strategy for the past five years.

By all accounts, what is happening in Queensland at the moment is a great story – and one that only comes around once in a generation.

Boom or bust

The Brisbane legal services market is one traditionally overlooked in discussions about Australia’s most significant legal hubs.

However, much like Perth, its booming energy and resources sector – and all the work that goes with it – has propelled it to the forefront of law firm focus and strategic adjustment.

The fact that $82 billion worth of projects in Queensland have now moved through the final investment decision stage – and a recent Jones Lang LaSalle report put Brisbane at the top of the list of the world’s fastest growing cities by gross domestic product – means the Queensland economy is now well and truly in business.

And where there’s booming business, there are happy lawyers.

“To be frank, we are very pleased at the moment that we have got such a focus on resources,” says Brett Heading, McCullough Robertson’s chairman of partners.

“It is without doubt the strongest part of the Australian economy, and you have to remember that, at the end of the day, the legal economy is the mirror of what is happening in the Australian economy.”

While law firm growth in response to the resources boom has been rapid, those at the coalface are convinced it is sustainable.

“The really significant thing is that this is not the traditional ‘boom and bust’ cycle,” says Back.

“It is very much a generational change in investment, which makes us very confident that the rapid growth we have gone through in the last five or six years is sustainable, both in a revenue sense and in a staffing sense.”

Brisbane-based Corrs Chambers Westgarth partner Peter Schenk agrees.

“The mining work is likely to continue for at least five years, and perhaps as many as 20 years,” he says.

“Certainly, all the feedback from the people we work with in the market is that the current levels of demand from now onwards is a ‘once in a generation’ level of growth.”

A foreign affair

Without a doubt, the hot sectors in the Queensland economy are primarily resources-related, including coal seam gas, oil, M&A, construction, projects and litigation.

While booms of this type are generally prone to busting, Schenk says Australia is in a more fortunate position than most.

“When you look at whether or not this investment and activity is influenced by world events, even if Chinese demand dropped off, all of the projects we are working on in relation to Indian investment are driven by Indian domestic demand,” he explains.

“All of the investment we are seeing, particularly in relation to coal, is driven entirely by internal demand. A lot of that is coming from equity in India, too, and not necessarily from banks.

“Australia is thus in an extremely fortunate position, because even if there is a continuing contraction in the world economy … we will be fine. That’s the reason that we are so confident.”

Vassallo is also extremely confident that Queensland has the goods to survive economic turmoil. So much so that he recently left Hynes Lawyers to establish what he sees as a unique boutique firm focusing on resources and technology.

He plans to buck the market trend and grow organically, with a view to international expansion via Hong Kong.

“I realised a few years ago that the Queensland market lacked this sort of specialist firm,” he says.

“I looked really hard at the WA market. It’s a lovely place to live, but you’ve got some very, very capable lawyers there, and it’s a saturated market. I purposely went out and set up GRT because a firm like that didn’t exist in the Queensland market, whereas there are quite a few in WA and they are doing a very good job.”

The firm must be doing something right, given that Vassallo says international firms on the lookout for suitable merger partners have already approached him.

Heading, too, says McCullough Robertson has been on the end of numerous international approaches in recent times – something he says is part and parcel of Brisbane’s growing allure, but in which he’s not interested at this point in time.

Glenn Vassallo, GRT lawyers

“You never say no to anything, but we are determined to remain as an independent Australian law firm, and we think that will be good for both our clients and our people,” he says.

“We are pretty comfortable in the suits we are wearing at the moment, so we don’t feel the pressure that I suspect the top-tier national firms are feeling. There is a lot of coffee drinking and wine drinking going on at the moment with those firms.”

Talking about diversification

Another reason many Queensland law firms are crying lucky is that energy and resources are not the only sectors keeping them busy.

Agribusiness and food security-related work, which has long provided a steady stream of business for Queensland, are also dominating foreign investment initiatives.

“We are seeing significant investment in agriculture, which comes as no surprise,” says Brisbane-based Corrs partner Stephanie Daveson.

“If you look at the sugar industry now in Queensland, it is predominantly foreign-owned. We expect that trend to continue.”

Heading also says this sector, in which McCullough Robertson has long had significant nous, is keeping the firm busy.

“Agribusiness is still a very important part of the business,” he says. “There is more written in the papers about the insatiable needs of China in regards to resources and food. We are seeing increasing levels of foreign investment largely from China, Singapore, the UK, Europe, the USA and the Middle East. They are trying to secure equity positions on everything from cotton to dairy to sugar. They are looking to secure that on a long-term basis, so that will continue to be a strong part of our practice.”

The other sector demanding attention is technology, and Vassallo sees significant potential in this space – if the new State Government, led by Liberal premier Campbell Newman, is willing to embrace it.

“I do see [technology] as being the other opportunity Queensland has at its feet, because there are a lot of major resources companies with huge amounts of capital [to put into] technology development,” says Vassallo.

“You are seeing things already being trialed by Rio Tinto, such as driverless trucks and the like, so that technology development can really move to an international standard … If the Government can link in to that, then if the resources industry does turn, for whatever reason, the capital can flow into technology.”

Global eyes on the prize

Despite a diverse array of carrots dangling before firms looking to bolster their Queensland capabilities, there is little doubt that for global firms, the gold lies in the resources-related finance sector.

Many are of the opinion that it won’t be long before several more global firms have a presence in Brisbane, adding to the likes of DLA Piper, Norton Rose and the recently arrived Ashurst.

However, the partners at Corrs, for one, are skeptical as to how the influx of global firms in Australia will play out.

“From our perspective, one wonders whether this is just a trend,” says Schenk. “There is a perception within the banking and finance groups of some firms that there is going to be more work brought to bear by these international entities … It is going to be interesting to see how it pans out over the next five years.”

Daveson also questions the benefits of being global in the Queensland market, as well as the motivations of firms who decide to link up with global suitors.

“You have got to consider the mergers that are happening in the context of the internal conflict that might be going on within those organisations,” she says. “The global financial crisis put a lot of pressure on the soft spots of some of our competitors, and I think some of the merger activity may well be as a result of that. I don’t think we are close to looking at anything, but for us to merge, it would have to make complete sense to us.”

Talent wars

Whatever the situation in Queensland, the fact remains that finding good lawyers to fill offices is harder than ever.

However, according to Daveson, the “fallout” from some of the global mergers is seeing a boost in ordinarily staid lateral movements.

“We have seen people coming to us who are not sure where Brisbane sits in a global merger and what that means for the Brisbane practice and the Brisbane prospects for people going forward,” she says.

“Some quality candidates are questioning the strategy of these global tie-ups in the context of a Brisbane market and a practitioner’s track through to partnership.”

Back says Freehills has had to cast a very wide net in order to boost the firm’s numbers to the required levels.

“We are getting more applications from people outside of Brisbane than from people in Brisbane. It is such a tight market,” he says.

“Frankly, it is really hard. We have had seven acceptances this week, but to be honest, that is rare. It has been really difficult to source talent, particularly in the two to five-year range.

Stephanie Daveson, Corrs

“We have started recruiting from the UK. Some are Australians wanting to return home. Others are UK-born and trained and looking for opportunities in Australia.”

Schenk says Corrs has been looking further afield too, reviewing applicants from the UK, Ireland, Hong Kong and Singapore.

Quietly confident

As the global economy continues to tremble in the wake of ongoing uncertainties, Queenslanders are staying optimistic and unusually confident.

The primary challenge facing well-placed corporate firms, it seems, is populating their offices with the required talent, and if that is the pinnacle of their worries, things are looking very, very good for Queensland firms.

Back, for one, couldn’t agree more.

“It is a really good story,” he says. “The proof is in the numbers, the revenue and the opportunities here, as well as the types of clients headquartered here and investing a significant amount in the state.

“We made the deliberate decision a few years ago to really focus on a couple of sectors in Queensland – including coal and gas and government work – and they certainly proved to be the right decisions.”

While law firm growth in response to the resources boom has been rapid, those at the coalface are convinced it is sustainable.

“The really significant thing is that this is not the traditional ‘boom and bust’ cycle,” says Back.

“It is very much a generational change in investment, which makes us very confident that the rapid growth we have gone through in the last five or six years is sustainable, both in a revenue sense and in a staffing sense.”

Brisbane-based Corrs Chambers Westgarth partner Peter Schenk agrees.

“The mining work is likely to continue for at least five years, and perhaps as many as 20 years,” he says.

“Certainly, all the feedback from the people we work with in the market is that the current levels of demand from now onwards is a ‘once in a generation’ level of growth.”

A foreign affair

Without a doubt, the hot sectors in the Queensland economy are primarily resources-related, including coal seam gas, oil, M&A, construction, projects and litigation.

While booms of this type are generally prone to busting, Schenk says Australia is in a more fortunate position than most.

“When you look at whether or not this investment and activity is influenced by world events, even if Chinese demand dropped off, all of the projects we are working on in relation to Indian investment are driven by Indian domestic demand,” he explains.

“All of the investment we are seeing, particularly in relation to coal, is driven entirely by internal demand. A lot of that is coming from equity in India, too, and not necessarily from banks.

“Australia is thus in an extremely fortunate position, because even if there is a continuing contraction in the world economy … we will be fine. That’s the reason that we are so confident.”

Vassallo is also extremely confident that Queensland has the goods to survive economic turmoil. So much so that he recently left Hynes Lawyers to establish what he sees as a unique boutique firm focusing on resources and technology.

He plans to buck the market trend and grow organically, with a view to international expansion via Hong Kong.

“I realised a few years ago that the Queensland market lacked this sort of specialist firm,” he says.

“I looked really hard at the WA market. It’s a lovely place to live, but you’ve got some very, very capable lawyers there, and it’s a saturated market. I purposely went out and set up GRT because a firm like that didn’t exist in the Queensland market, whereas there are quite a few in WA and they are doing a very good job.”

The firm must be doing something right, given that Vassallo says international firms on the lookout for suitable merger partners have already approached him.

Heading, too, says McCullough Robertson has been on the end of numerous international approaches in recent times – something he says is part and parcel of Brisbane’s growing allure, but in which he’s not interested at this point in time.

Glenn Vassallo, GRT lawyers

“You never say no to anything, but we are determined to remain as an independent Australian law firm, and we think that will be good for both our clients and our people,” he says.

“We are pretty comfortable in the suits we are wearing at the moment, so we don’t feel the pressure that I suspect the top-tier national firms are feeling. There is a lot of coffee drinking and wine drinking going on at the moment with those firms.”

Talking about diversification

Another reason many Queensland law firms are crying lucky is that energy and resources are not the only sectors keeping them busy.

Agribusiness and food security-related work, which has long provided a steady stream of business for Queensland, are also dominating foreign investment initiatives.

“We are seeing significant investment in agriculture, which comes as no surprise,” says Brisbane-based Corrs partner Stephanie Daveson.

“If you look at the sugar industry now in Queensland, it is predominantly foreign-owned. We expect that trend to continue.”

Heading also says this sector, in which McCullough Robertson has long had significant nous, is keeping the firm busy.

“Agribusiness is still a very important part of the business,” he says. “There is more written in the papers about the insatiable needs of China in regards to resources and food. We are seeing increasing levels of foreign investment largely from China, Singapore, the UK, Europe, the USA and the Middle East. They are trying to secure equity positions on everything from cotton to dairy to sugar. They are looking to secure that on a long-term basis, so that will continue to be a strong part of our practice.”

The other sector demanding attention is technology, and Vassallo sees significant potential in this space – if the new State Government, led by Liberal premier Campbell Newman, is willing to embrace it.

“I do see [technology] as being the other opportunity Queensland has at its feet, because there are a lot of major resources companies with huge amounts of capital [to put into] technology development,” says Vassallo.

“You are seeing things already being trialed by Rio Tinto, such as driverless trucks and the like, so that technology development can really move to an international standard … If the Government can link in to that, then if the resources industry does turn, for whatever reason, the capital can flow into technology.”

Global eyes on the prize

Despite a diverse array of carrots dangling before firms looking to bolster their Queensland capabilities, there is little doubt that for global firms, the gold lies in the resources-related finance sector.

Many are of the opinion that it won’t be long before several more global firms have a presence in Brisbane, adding to the likes of DLA Piper, Norton Rose and the recently arrived Ashurst.

However, the partners at Corrs, for one, are skeptical as to how the influx of global firms in Australia will play out.

“From our perspective, one wonders whether this is just a trend,” says Schenk. “There is a perception within the banking and finance groups of some firms that there is going to be more work brought to bear by these international entities … It is going to be interesting to see how it pans out over the next five years.”

Daveson also questions the benefits of being global in the Queensland market, as well as the motivations of firms who decide to link up with global suitors.

“You have got to consider the mergers that are happening in the context of the internal conflict that might be going on within those organisations,” she says. “The global financial crisis put a lot of pressure on the soft spots of some of our competitors, and I think some of the merger activity may well be as a result of that. I don’t think we are close to looking at anything, but for us to merge, it would have to make complete sense to us.”

Talent wars

Whatever the situation in Queensland, the fact remains that finding good lawyers to fill offices is harder than ever.

However, according to Daveson, the “fallout” from some of the global mergers is seeing a boost in ordinarily staid lateral movements.

“We have seen people coming to us who are not sure where Brisbane sits in a global merger and what that means for the Brisbane practice and the Brisbane prospects for people going forward,” she says.

“Some quality candidates are questioning the strategy of these global tie-ups in the context of a Brisbane market and a practitioner’s track through to partnership.”

Back says Freehills has had to cast a very wide net in order to boost the firm’s numbers to the required levels.

“We are getting more applications from people outside of Brisbane than from people in Brisbane. It is such a tight market,” he says.

“Frankly, it is really hard. We have had seven acceptances this week, but to be honest, that is rare. It has been really difficult to source talent, particularly in the two to five-year range.

Stephanie Daveson, Corrs

“We have started recruiting from the UK. Some are Australians wanting to return home. Others are UK-born and trained and looking for opportunities in Australia.”

Schenk says Corrs has been looking further afield too, reviewing applicants from the UK, Ireland, Hong Kong and Singapore.

Quietly confident

As the global economy continues to tremble in the wake of ongoing uncertainties, Queenslanders are staying optimistic and unusually confident.

The primary challenge facing well-placed corporate firms, it seems, is populating their offices with the required talent, and if that is the pinnacle of their worries, things are looking very, very good for Queensland firms.

Back, for one, couldn’t agree more.

“It is a really good story,” he says. “The proof is in the numbers, the revenue and the opportunities here, as well as the types of clients headquartered here and investing a significant amount in the state.

“We made the deliberate decision a few years ago to really focus on a couple of sectors in Queensland – including coal and gas and government work – and they certainly proved to be the right decisions.”