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Zhong Lun Law Firm Advises SOHO China on Acquisition of Bund 204 Land in Shanghai
Zhong Lun Law Firm Advises SOHO China on Acquisition of Bund 204 Land in Shanghai
Chinese commercial property developer SOHO China Limited (SOHO China) announced the acquisition of the Bund 204 Land (the Project) on June 11, 2010. The total consideration for the transaction is approximately RMB2.25 billion (inclusive of liabilities to be assumed by the purchaser). Upon completion, SOHO China will hold 90% interest in T&T International and indirectly holds 61.506% equity interest in the Project Company.
Zhong Lun Law Firm acted as legal counsel for the acquisition. The team, comprising partners Hao Han, Zhang Jian, Simon and Roger Ho, and attorneys-at-law Wang Yang, Hu Yi, provided full services for SOHO China. Services included transaction structuring, due diligence investigations into the Project, the Project Company and offshore companies, and documentation.
The acquisition is characterized by complex equity relationships and transactions structures, involving offshore bridge loans, equity pledge, equity transfer and capital increase of BVI companies and offshore acquisition financing. The transaction covered jurisdictions such as BVI, Hong Kong and the Chinese mainland and had high demand on risk control. Therefore, the law firm mobilized the professional team from its Beijing, Shanghai and Hong Kong offices to advise on the acquisition.
The Project has a total site area of approximately 22,462 square meters. Its land use rights are for commercial, financial, office and hotel use. The Project has a planned overall construction area of approximately 189,000 square meters of which the above ground construction area will be approximately 112,312 square meters.
