Baker & McKenzie’s Hong Kong office advised Cheung Kong (Holdings) Limited on the sale of its entire interests in five shopping malls in Hong Kong to Fortune Real Estate Investment Trust (“Fortune REIT”), a Singapore real estate investment trust.
The aggregate acquisition value of the properties sold by Cheung Kong was approximately HK$3.1 billion. Fortune REIT raised in excess of HK$2 billion through its IPO in Singapore and an international placement to institutional and other investors.
Cheung Kong was the sponsor of Fortune REIT and subscribed for approximately 27.4 per cent of the units of Fortune REIT (subject to reduction to approximately 21.4 per cent if an over-allotment option granted in connection with Fortune REIT’s IPO is exercised in full).
The completion of the sale by Cheung Kong, as well as the listing of Fortune REIT on the Main Board of the Singapore Securities Exchange Limited, took place on 12 August 2003. Fortune REIT is the first listed real estate investment trust involving a Hong Kong property developer.
Milton Cheng, the partner who led the Baker & Mc.Kenzie team, commented – “We are extremely pleased to have had the opportunity to work with Cheung Kong on this ground-breaking deal. This is the first listed REIT involving a Hong Kong property developer and Hong Kong properties. It is also the first Singapore-listed REIT with non-Singapore properties.”