LawFuel – Asia Business & Law News – Mallesons Stephen Jaques has advised Sun Hung Kai Financial on Asia’s first property derivative.
The Mallesons team was involved in structuring and documenting a price return swap under which Sun Hung Kai Financial sold exposure to the Hong Kong residential market to ABN AMRO in return for a periodic floating payment.
The groundbreaking structure paves the way for further similar transactions to be completed in the region. Property derivatives enable investors to take a position on the property market without directly owning the properties and have the further advantage of being more liquid than physical assets.
Hong Kong structured finance partner Adrienne Showering commented: “On this deal, we helped our client launch a new underlying asset for the Asian market by applying our cutting-edge expertise in product development and our wide experience.
The property derivatives market began in the UK in 2005 and has already seen close to £5 billion in deals. Market participants are expecting the product to grow in Asia and Australia. Our first-hand experience will allow us to add more value to our clients in this complex area of business.”
Mallesons has a highly developed and long-established derivatives practice which spans industry, advisory and transactional work. Our lawyers have a proven reputation of providing clients with practical and innovative solutions to achieve their commercial objectives.
Our team are spread across our offices in Australia, Hong Kong, China and London and have extensive experience in advising on the full range of derivative products offered in the domestic and international capital markets.
Senior associate Paul McBride led the Mallesons team in Hong kong.
Further information about the team is available using the links below: