Global law firm Norton Rose Fulbright has advised Beijing Capital Juda Limited on its RMB2,372 million acquisition of three outlet projects in Beijing, Kunshan and Huzhou in China from its parent company, Beijing Capital Land Ltd. The acquisition will enable Capital Juda to become one of the largest nationwide outlets developer and operator in China.

The firm has advised on the delineation of potentially competing business with the parent company, Beijing Capital Land, which is also a leading real estate developer in residential and mixed-use property projects. The acquisition constitutes a very substantial acquisition and connected transaction under the listing rules of the Hong Kong Stock Exchange. Capital Juda will settle the consideration payable in cash, funded by a new issue of convertible preference shares to Beijing Capital Land under a specific mandate from shareholders.

With its property portfolio to be enhanced as an effect of the acquisition, Capital Juda also seeks a prior specific mandate from shareholders (which the firm also advised on) to place new ordinary shares to interested investor(s) in the short-term after completion of the acquisition. In doing so, it will broaden Capital Juda’s shareholder base and increase its market capitalisation. HSBC is acting as the placing agent for Capital Juda.

The Norton Rose Fulbright team was led by Hong Kong partner Psyche Tai, assisted by of counsel Rachel Chan, and associates Virginia Lee and Timothy Lam.