Baker & McKenzie is advising ARA Asset Management (Fortune) Limited, as manager of Fortune Real Estate Investment Trust (“Fortune REIT”), on Fortune REIT’s proposed acquisition from Cheung Kong (Holdings) Limited of Kingswood Ginza in Hong Kong for a total consideration of approximately HK$5.84 billion. The acquisition will be by way of purchase of the company holding the Kingswood Ginza Property. The purchase consideration will be financed by drawing down new term loan facilities and using the net proceeds of the unit placement conducted recently by Fortune REIT in August 2013. Baker & McKenzie advised Fortune REIT on the unit placement and is also advising on the debt financing.
The Kingswood Ginza Property comprises the entire shopping mall commonly known as “Kingswood Ginza” as well as certain other retail, kindergarten, parking and ancillary areas within the Kingswood Development which is located in Tin Shui Wai, Yuen Long, New Territories.
The Baker & McKenzie team advising Fortune REIT is led by Milton Cheng, partner and head of the Firm’s REIT practice in Hong Kong and China, corporate partner Christina Lee and senior associate Jeremy Ong. Simon Leung, banking & finance partner, is advising on the debt financing aspects, and the team also included real estate partner Debbie Cheung and tax partner Pierre Chan.
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 Fortune REIT’s IPO, its dual primary listing in Hong Kong by way of introduction, follow-on acquisitions and financings; Hui Xian REIT’s IPO, the first RMB denominated REIT to be listed in Hong Kong; New Century REIT’s IPO; Yuexiu REIT’s IPO and follow-on acquisitions and financings, including its investment in Guangzhou International Finance Center and medium-term note programme; Champion REIT’s IPO, follow-on acquisitions, medium-term note programme, placements and convertible bonds issuances; The Link REIT’s medium-term note programme and its property acquisitions; Regal REIT’s follow-on acquisitions, financings and medium-term note programme; Prosperity 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, likely to be 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.
