Baker & McKenzie is acting as counsel to ARA Asia Dragon Fund (“ADF”) in relation to Dynasty Real Estate Investment Trust’s (“Dynasty REIT”) landmark initial public offering (“IPO”) in Singapore. ADF is the seller of the three commercial properties, located in primary commercial centres in Nanjing, Dalian and Shanghai, that will form the initial portfolio of Dynasty REIT. In addition, the Firm is acting as borrower’s counsel to Dynasty REIT on its IPO-related debt financing.
Dynasty REIT is the first RMB-denominated equity to be listed on the Singapore Exchange and also the first to use the RMB/SGD dual currency trading platform. Sponsored by ARA Asset Management Limited and managed by ARA Trust Management (Dynasty) Pte. Ltd. (the “Dynasty REIT Manager”), Dynasty REIT will focus on investing in income-producing commercial real estate in the PRC, as well as real estate-related assets.
The Baker & McKenzie team was led by Milton Cheng, partner and head of the Firm’s REIT practice in Hong Kong and China. Partner Edmond Chan and special counsel May Lau are advising ADF on the corporate, M&A and real estate aspects, and special counsel Maureen Chow is advising the Dynasty REIT Manager on the debt financing aspects of the transaction.
Commenting on the deal, Milton Cheng said, “We are delighted to have the opportunity to assist our long-standing clients, ADF and the ARA Group, on this landmark transaction. Our Firm has been involved with the development of their portfolios in China over the years, and we are proud to play a part in the ARA Group’s continued growth and expansion across the region.”
Milton Cheng added, “Dynasty REIT’s IPO heralds an exciting new phase in the internationalisation of the RMB, following on from the IPO last year of Hong Kong-listed Hui Xian REIT, which was the first RMB-denominated international equity IPO. We are pleased to have been involved in both of these pioneer transactions, and look forward to participating in the further development of this exciting market.”
These roles in relation to Dynasty REIT’s IPO are the latest in Baker & McKenzie’s list of recent high profile RMB-denominated transactions, which include Hui Xian REIT’s IPO, the first RMB-denominated equity IPO outside mainland China; China WindPower Group’s RMB750 million issuance of guaranteed RMB-denominated bonds due in 2014; and Pacific Andes Resources Development’s issuance of RMB600 million three-year RMB-denominated bonds.
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 dual primary listing in Hong Kong by way of introduction; Fortune REIT’s IPO, follow-on acquisitions and financings; Yuexiu REIT’s IPO and follow-on acquisitions, including its recent investment in Guangzhou International Finance Center; The Link REIT’s medium-term note programme and its property acquisitions; Champion REIT’s IPO and follow-on acquisitions; Regal REIT’s follow-on acquisitions; 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 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.
