LAWFUEL – Law News, Law Jobs – Mallesons Stephen Jaques has advised Dynasty Property Investments Limited (DPIL), through an issuer, on its US$145 million real estate securitisation, China’s first cross-border commercial mortgage-backed securitisation.
The Series 2006-1 Floating Rate Secured Notes are the first of their kind to be backed by onshore Chinese assets, being nine commercial properties. The properties are shopping centres located in nine cities in the eastern provinces of China.
The Mallesons team in Hong Kong negotiated all the financing documents, helped structure a unique offshore and onshore security package and advised on a complex swaps mechanism.
As international counsel, Mallesons were responsible for coordinating efforts across multiple jurisdictions including domestic counsel in the PRC, Mauritius Bermuda and the Cayman Islands, a derivatives team in Singapore and client teams in Hong Kong, China, Sydney and London.
Mallesons had been involved in the deal since its inception, acting as lead lawyers for DPIL on its initial acquisition and related debt and equity financing of the underlying properties. Having worked closely with DPIL over a two-year period, the team drew on its well-developed understanding of DPIL’s requirements to help the client achieve its legal and commercial objectives.
The matter was led by partners Steven Christopher, Adrienne Showering and Dieter Yih. Steven Christopher commented: “We are pleased to have been involved in such a landmark transaction that will set a benchmark for new financing techniques in China.
As this was the first deal of its kind, we had to overcome the challenges of taking domestic security over real property and matching onshore RMB cashflows to an offshore US dollar-denominated investment product to achieve an international rating and listing”.
The success of the deal is a testament to the collective patience and determination of all the teams involved – sponsors, bankers, lawyers.”
By bringing together the team’s financing and capital markets expertise and knowledge of structuring real property transactions in the PRC, Mallesons were able to advise the client effectively on all aspects of the deal. Mallesons has a proven track record over many years in advising the commercial property and managed fund industries about property, fund raising and structured finance transactions.
On this matter, Steven Christopher, Adrienne Showering and Dieter Yih were supported by Hayden Flinn, Paul McBride and Angus Sip. Paul Hastings Janofsky & Walker acted for Citigroup and Macquarie as joint arrangers.