Over the last several weeks, Dechert LLP corporate partner Stephen Chan led a Hong Kong-based team on advising clients through a series of four M&A and loan financing deals.
Dechert advised China Financial Services Holdings Limited (“China Financial”), a Hong Kong-listed company, in the acquisition of the entire issued share capital of Brilliant Star Capital Limited, a wholly-owned subsidiary of Value Partners Group Limited which indirectly holds 90% of the equity interest in Chengdu Vision Credit Limited, and an amount due from the Target Company to Value Partners of approximately HK$323.1 million. The acquisition agreement took place on April 25, 2017, and is expected to be completed in October 2017. The acquisition represents a valuable horizontal integration opportunity that brings synergy to the existing business of China Financial and enables regional expansion into Southwest China.
Additionally, Dechert advised New Century Asset Management Limited (“REIT Manager”) in its capacity as the manager to New Century Real Estate Investment Trust (“New Century REIT”) in the disposal of a wholly-owned subsidiary of Full Wise HK, which holds Shanghai Songjiang New Century Grand Hotel Limited, for approximately RMB877.28 million. The sale was executed on April 28, 2017. The disposal is anticipated to lower the concentration of New Century REIT’s investment in a single market, and the proceeds will enable the REIT Manager to explore opportunities to invest in properties in other jurisdictions.
Finally, Dechert advised HSBC Institutional Trust Services (Asia) Limited on two transactions. First, in its capacity as the trustee to Link Real Estate Investment Trust (“Link REIT”) in the acquisition of the entire issued share capital of a direct wholly-owned subsidiary of Barrel Holdings (Cayman) Limited, which in turn holds the property known as the Metropolitan Plaza in Liwan District, Guangzhou, the People’s Republic of China, for approximately RMB4.06 billion. The sale completion is expected to take place in May 2017. Dechert also advised HSBC Institutional Trust Services (Asia) Limited, in its capacity as the trustee to Yuexiu Real Estate Investment Trust (“Yuexiu REIT”). Yuexiu REIT, through its subsidiary, entered into a HK$2.95 billion term loan facility agreement with DBS Bank Ltd., Industrial and Commercial Bank of China (Asia) Limited, Standard Chartered Bank (Hong Kong) Limited, The Hongkong and Shanghai Banking Corporation Limited, Hang Seng Bank Limited, OCBC Wing Hang Bank Limited as mandated lead arrangers and original lenders, and with DBS Bank Ltd., Hong Kong Branch as the agent for the finance parties (“Facility”). The Facility is for the purpose of refinancing existing facilities, payment of all fees, costs and expenses in relation to the Facility, and financing the general working capital of Yuexiu REIT and its subsidiaries. The Facility was entered into on April 28, 2017, with the first drawdown made in May 2017.
Hong Kong-based corporate partner Stephen Chan led on each transaction detailed above, with assistance from corporate associates Denise Tsui, Nicole Wong and Jacqueline Foo.
