Fortune REIT gets HKD5 billion loan for purchase of Kingswood Ginza
Fortune Real Estate Investment Trust (Fortune REIT) has secured term loans of about HK$5 billion (US$644.79 million) in October 2013 for financing the acquisition of Kingswood Ginza property. This 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 in the SAR. The acquisition was completed on October 9 2013.
The Baker & McKenzie team advising Fortune REIT was led by Milton Cheng, partner and head of the firm’s REIT practice in Hong Kong and China. Simon Leung, banking & finance partner, advised on the debt financing aspects. Corporate partner Christina Lee and senior associate Jeremy Ong, advised on the acquisition aspect, and the team also included real estate partner Debbie Cheung.
Baker & McKenzie has been involved in a number of recent debt capital markets deals, including advising Yuexiu REIT on its US$1 billion medium term note programme as well as issuance of US$350 million 3.10% notes due 2018; Yuexiu Property Company on its first US$2 billion medium term note programme as well as issuance of US$850 million notes; Yue Xiu Enterprises (Holdings) on its initial issuance and private placement of HK$1 billion 6.4% notes due 2019, follow-on issuance of HK$1 billion 6.4% notes due 2020 and private placement and on its third note issuance of HK$1 billion 5.65% corporate notes due 2018, Champion REIT on its US$1 billion guaranteed medium term note programme; Cheung Kong (Holdings) and its wholly-owned subsidiary, Cheung Kong Bond Securities (03), on the issue and offering by CKBS3 of US$500 million 5.375% guaranteed senior perpetual securities; Cheung Kong (Holdings) and its wholly-owned subsidiary, Cheung Kong Bond Securities (02) on the issue and offering by CKBS2 of HK$1 billion 5.25% guaranteed senior perpetual securities.