DEALS
Zhong Lun Advises on Injection of Guangzhou International Finance Center into Yuexiu Real Estate Investment Trust
Zhong Lun Advises on Injection of Guangzhou International Finance Center into Yuexiu Real Estate Investment Trust
On 28 May 2012, Yuexiu Property (00123.HK) and Yuexiu REIT (00405.HK) jointly announced that Yuexiu Property signed a deal to inject Guangzhou International Finance Center into Yuexiu REIT for a consideration of CNY 8.85 billion (approximately US$ 1.4 billion).
Zhong Lun is advising Yuexiu REIT on this transaction worth more than one billion US dollars. After the completion of the transaction, Yuexiu REIT will become China’s largest real estate fund and one of the largest listed real estate funds in Asia and the success of Yuexiu REIT in taking over Guangzhou IFC will be likened to a snake swallowing an elephant. The completion of the transaction is subject to certain conditions, including shareholder approvals.
The transaction has been the subject of extensive media coverage. Mr. Lv Zhi Feng, the Chairman of the Yuexiu Group and the Yuexiu Property, commented that "We do this deal, not because of pressure on cash, but based on the strategic deployment."
Yuexiu REIT (00405.HK) is a Hong Kong collective investment scheme listed on the Hong Kong Stock Exchange. As part of the transaction, Yuexiu REIT intends to take an effective interest of 98.99% in Guangzhou International Finance Center. The Guangzhou IFC is one of the world’s ten tallest buildings and a skyscraper in Guangzhou featuring a 58-storey Grade-A office building, the Four Seasons Hotel, the Ascott Serviced Apartments and a high-end shopping mall (see photo below).
Zhong Lun team includes partners Zhang Xuebing, Christie Tao and associates Gao Wei, Terri Lu, Wu Yun and Dustin Huang, all of the Beijing office, and partner Glory Rong, associates Billy Zhang and Arlene Lin of the Guangzhou office.
Professionals
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Xuebing ZHANG
Equity Partner
BeijingPractices： Litigation & Arbitration,Bankruptcy-Insolvency & Reorganization,Chinese Mainland Capital MarketsIndustries： Real Estate,Urban Infrastructure,Transportation & Logistics,Tourism & Hospitality,Banking & Financial Services,Insurance -
Xuebing ZHANG
Equity Partner
Beijing
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