29 July, 2015
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 HKD 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.
Freshfields Bruckhaus Deringer acted for Shui On Land.