Baker & McKenzie is advising The Link Real Estate Investment Trust ("The Link REIT”) on its acquisition of Corporate Avenue 1 & 2 in Shanghai, PRC, for RMB6,600.86 million from Shui On Land Limited. Comprising two Premium Grade A office towers and a connecting retail podium and pavilion with street shops and carparks thereunder, this is The Link REIT's first acquistion of a mixed-use property (office and retail) in Mainland China. Completion of the acquisition is expected to take place on 24 August 2015.
The Baker & McKenzie team for the acquistion was led by Edmond Chan, head of the Firm's real estate practice in Hong Kong/China, on the documentation and real estate aspects, and by Milton Cheng, head of the Firm’s REIT practice in Hong Kong/China, on the regulatory aspects. Real estate partner May Lau and corporate/regulatory special counsel Jeremy Ong were also involved.
Earlier in 2015, Baker & McKenzie also handled the The Link REIT's successful bid for Government land, situated in Kwun Tong, Kowloon, through a joint venture with Nan Fung for HK$5.86 billion. The Corporate Avenue 1 & 2 acquisition is the latest in a long line of successful deals completed by the Baker & McKenzie team for The Link REIT.
Commenting on the deal, Milton Cheng, who is also the Managing Partner of Baker & McKenzie's China and Hong Kong offices, said, “We are delighted to have the opportunity once again to support The Link REIT in yet another significant transaction and its first mixed-use property acquistion in mainland China. This comes swiftly after its first acquisition in the PRC, the purchase of EC Mall in Beijing, in April of this year. We look forward to continuing to work with The Link REIT on the expansion of its portfolio both in Hong Kong and the PRC in the future."
The Link REIT currently has a portfolio consisting of properties with an internal floor area of approximately 11.0 million square feet of retail space and approximately 77,000 car parking spaces. The majority of its properties are located in Hong Kong.
Baker & McKenzie's Asia-Pacific REIT Group has been at the forefront of ground-breaking REIT transactions in Asia. The team has been involved in almost all of the significant transactions to date involving REITs listed or with assets in Hong Kong – including The Link REIT’s follow-on acquisitions and disposals, financings, medium-term note programme and investment mandate expansions into the PRC and to allow property development activities; Fortune REIT’s IPO, its dual primary listing in Hong Kong by way of introduction, follow-on acquisitions and financings; Prosperity REIT’s IPO, follow-on acquisitions and financings; Hui Xian REIT’s IPO, follow-on acquisitions and financings; Yuexiu REIT’s IPO, follow-on acquisitions, financings and medium-term note programme; Champion REIT’s IPO, follow-on acquisitions, financings, medium-term note programme and convertible bonds issuances; Regal REIT’s follow-on acquisitions, financings and medium-term note programme; New Century REIT's IPO and follow-on acquisitions and financings; Sunlight REIT’s IPO; and RREEF China Commercial Trust’s IPO.
The team has also advised on numerous other significant REIT-related deals in the Asia-Pacific – including Impact Growth REIT, the first REIT to be established in Thailand; Prospect REIT Investment Corporation's merger with Japan Rental Housing Investments Inc., Tower REIT’s IPO, Fubon No. 1 REIT’s and Fubon No. 2 REIT’s IPOs, MacarthurCook Industrial REIT’s IPO, Tokyo Growth J-REIT’s IPO, ARA Asset Management’s IPO, YTL Corporation’s acquisition of interests in Macquarie Prime REIT (now known as Starhill Global REIT) and Starhill Global REIT’s first acquisition in Australia.
Baker & McKenzie's real estate practice in Hong Kong/China is one of the largest, multidisciplinary and integrated real estate teams in the Asia Pacific region. The team has extensive industry knowledge and solid experience in all aspects of property law, including major property developments, acquisitions, disposals and formation of joint ventures in relation to real estate in the region, as well as management and operation of properties, particularly hotels and branded residences. The team has acted on some of the most significant real estate transactions in Hong Kong and China – including the disposal of 50 Connaught Road in 2012 (reported then as the largest single office tower sale & purchase transaction in Hong Kong), Wheelock Properties Limited's landmark sale of West Tower at One Bay East, Kowloon East in 2013 (marked then as the largest single office tower sale & purchase transaction in Kowloon, and also the second-highest price on record for a whole office tower in Hong Kong) and sale of East Tower at One Bay East, Kowloon East in 2014 (reported then as the largest single office tower sale & purchase transaction in Hong Kong to date).
The Hong Kong/China real estate practice has received numerous accolades and awards, and is listed as a "Tier 1 practice" in Hong Kong and China by commercial law firm guides including Asia Pacific Legal 500 and Chambers Asia Pacific. The team has also been described as "one of the best" for understanding the Chinese real estate market (Asia Pacific Legal 500, 2012).
