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JunHe advised CMHI on its acquisition of the Nanhai Yikumeng Industrial Building Project located in Qianhai


In September 2015, Park Base Investments Limited (Park Base), a wholly-owned subsidiary of China Merchants Holdings (International) Company Limited (CHMI), entered into a Share Transfer Agreement of Shenzhen Jinyu Rongtai Investment Development Company Limited with Shenzhen China Merchants Commercial Property Investment Company Limited (SCMPI) and Shenzhen China Merchants Wealth Management Services Company Limited (SCMWM), pursuant to which Park Base agreed to acquire 100% equity interest in Shenzhen Jinyu Rongtai Investment Development Company Limited (Jinyu Rongtai) from SCMPI and SCMWM and thereby acquire the Nanhai Yikumeng Industrial Building Project located in Qianhai, Shenzhen, which is under development by Jinyu Rongtai.  The total consideration for the share transfer was RMB 2,046,789,200.

The Nanhai Yikumeng Industrial Building Project, (located in Qianhai, Nanshan District, Shenzhen) is a planned 25-floor commercial and office complex with a gross floor area of approximately 113,800 square meters.  The acquisition of this project by CHMI through Park Base will enable the company to secure prime office space in Qianhai to facilitate its business expansion and enhance its business efficiency.

This real estate property acquisition constitutes a related-party transaction of the listed company.  Unlike traditional M&As in the real estate sector, a variety of arrangements for matters in relation to related-party transactions of a listed company, pricing for equity transfers, payments and subsequent developments are required to be considered in whole.

In the upward shift of M&As in the real estate sector, large listed real estate companies have gradually focused on combing out their existing projects, aiming to integrate and redistribute their own resources in the best interests of their internal projects.

Messrs. LI, Lishan and ZHANG, Jianwei jointly led on this project.

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