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China – Baker & McKenzie Advises As Lead Counsel On Yuexiu Real Estate Investment Trust’s Proposed Investment In Guangzhou International Finance Center.

30 May, 2012

 

 

Baker & McKenzie is advising the Yuexiu Group, a long-standing client of the Firm, on the proposed investment by Yuexiu Real Estate Investment Trust (“Yuexiu REIT”) in Guangzhou International Finance Center (the “Property”).
 
The Property, which is currently owned by Yuexiu Property Company Limited (“Yuexiu Property”) (a significant unitholder of Yuexiu REIT), is one of the ten tallest skyscrapers in the world and a landmark building strategically located in the central business district of Guangzhou. The Property, which has an appraised value of approximately RMB15.37 billion as at 31 March 2012, is a premium mixed-use commercial development comprising a shopping mall, a Grade A office building, a 5-star hotel, luxury serviced apartments and car parks. The transaction will be financed by way of bank financing, proceeds of a unit placement and issuance of consideration and deferred units to Yuexiu Property.
 
The Baker & McKenzie team was led by Hong Kong-based Corporate partner, Dorothea Koo. Corporate partners Cheung Yuk Tong and Milton Cheng also provided support on corporate and REIT regulatory aspects. The team is acting as lead counsel on the transaction with primary responsibility for drafting the transaction agreements, legal/regulatory structuring, regulatory liaison and general transaction management. It is also acting for Yuexiu REIT on the acquisition financing for the deal.
 
Commenting on the transaction, Dorothea Koo said, “We are delighted to be able to assist the Yuexiu Group on this significant transaction. Our close working relationship with the client, combined with our public company M&A, REIT, regulatory and finance expertise, enabled us to work with the client and its joint financial advisers to navigate through the complex structural and regulatory issues.”
 
Milton Cheng, head of the Firm’s REIT practice in Hong Kong/China and head of the Asia-Pacific M&A practice group, added, “The acquisition marks a significant new phase in Yuexiu REIT’s growth strategy. It is also a good signal for the H-REIT market. We are excited at being able to support both Yuexiu Property and
Yuexiu REIT on their continued growth and development.”
 
The joint financial advisers to the REIT Manager are (in alphabetical order) BOCI, Goldman Sachs, J.P. Morgan, Morgan Stanley and Standard Chartered.
 
For further information, please contact:
 
Jamie Kar, Baker McKenzie
 
 
Follow Conventus Law on Twitter @conventuslaw
 
 

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