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JunHe Assisted Yuexiu Group in its Shelf Offering of RMB 5 billion Equity Rental Housing REITs


Since Guangzhou Yuexiu group(“Yuexiu Group”) received “Zhonglian Qianhai Kaiyuan-Yuexiu rental housing 1st ABS Project” (shelf financing amount is RMB 5 billion ) no-action letter from the SZEx, in August 2018 Yuexiu group received “Zhonglian Qianhai Kaiyuan-Yuexiu rental housing 1st I ABS Project” (financing amount is RMB 0.497 billion) no-action letter from SZEx , Zhonglian Qianhai Kaiyuan-Yuexiu rental housing 1st I ABS Project was raised in August, priority interest rate is 5% as the lowest among similar products in recent market.

Yuexiu Group was founded in Hong Kong in 1985. After 30 years’ development, especially the adjustment and optimization in recent years, Yuexiu group has gradually formed the “3+X” industry system—real estate、traffic infrastructure construction and finance as core industries. The asset value of Yuexiu Group is over RMB 400 billion and Yuexiu Group is the SOE group with the largest asset scale in Guangzhou and leading economic performance in China. There are four Hong Kong-listed companies (trusts) under Yuexiu Group, namely Yuexiu Property (00123.HK), Yuexiu Transport Infrastructure Limited (01052.HK), Yuexiu Real Estate Investment Trust (00405.HK) and Chong Hing Bank Limited (01111.HK). Among them, Yuexiu Property is a constituent stock of the MSCI China Index; Yuexiu Transport is a constituent stock of the Hang Seng China-Affiliated Corporations Index; and Yuexiu Real Estate Investment Trust has been selected by the Standard & Poor Global REIT index, the Bloomberg Asia REIT index.

JunHe, as corporate counsel to Yuexiu Group, provided whole-set legal services to the shelf session and session I including participating in the design and determination of deal structure, due diligence, determination and execution of the underlying assets restructure plan, drafting、modifying and finalizing the deal structures and conducting legal opinions. 

The leading partners on the project were Mr. ZHANG, Ping、Mrs.YI, Fang、Mr. ZHAO, Xiyong (Sammuel)、Mr. WANG, Yahui and Mr.LI, Deting.

JunHe is the only Chinese law firm to be admitted as a member of Lex Mundi and Multilaw, two international networks of independent law firms. JunHe and selected top law firms in major European and Asian jurisdictions are “best friends.” Through these connections, we provide high quality legal services to clients doing business throughout the world.