Taiwan, 22 June 2004 – LAWFUEL – Baker & McKenzie recently advised Fubon on the first REIT in Taiwan with the launch estimated to occur in Mid August 2004. The REIT is structured with two office buildings and one service apartment with a value of NT$6 billion and will be listed on the Taiwan Stock Exchange.
The Baker & McKenzie team, led by Lindy Chern and Kevin Liao, advised Fubon Construction as the deal counsel to the sponsor and management company.
The Taiwan Government approved its REIT code under two possible structures on 9 July 2003. Commenting on the deal, Kevin Liao notes that the, “structuring and drafting of documents demanded thorough considerations of many issues. There were standard forms for reference but the Baker & McKenzie team had to spend a great deal of time and effort in producing a draft meeting international standards. It was particularly difficult since the Real Estate Securitization Law alone is not sufficient to provide for statutory basis, for example the law fails to stipulate the functions of a fund manager but only provides functions of a real property manager. We, therefore, had to come out with provisions in the trust and management agreement on the functions of a fund manager. The government authorities in fact welcomed our efforts to fill in the gap and expressed their appreciation.”
This transaction further cements Baker & McKenzie’s position as a leader in REIT transactions in the region. With more than 10 years experience advising on REIT structures in Australia, the Firm’s Asia Pacific REIT Group also advised on the recent Fortune REIT listing in Singapore and have been involved in REIT structures in Japan and now Taiwan.