Dechert Advises New Century Asset Management Limited on the Privatisation of the First China-based Hotel REIT in the World
Global law firm Dechert has advised New Century Asset Management Limited on the successful completion of the disposal by New Century Real Estate Investment Trust (“New Century REIT”) of all of its operating businesses and assets to Huge Harvest International Limited, the largest unitholder of New Century REIT, for a total consideration of approximately HK$1.92 billion. Dechert also advised on the subsequent termination of New Century REIT which became effective today. New Century REIT will subsequently undergo liquidation and be deauthorised and delisted from the Hong Kong Stock Exchange upon completion of the liquidation.
Upon completion of the liquidation of New Century REIT, this transaction will mark the first REIT privatisation under Note 7 to Rule 2 of The Codes on Takeovers and Mergers and Share Buy-backs, as well as the second proposed REIT privatisation and delisting in Hong Kong.
The New Century REIT is a Hong Kong collective investment scheme constituted as a unit trust and is the first China-based hotel REIT in the world.
The Dechert team advising on the deal was led by partner Stephen Chan, with support from associates Charles Lam and Jacqueline Foo in Hong Kong. Mr. Chan, whose practice specialises in corporate finance transactions, commented, “We are delighted to have once again supported New Century, one of our long-standing clients, on this important transaction, which will provide its unitholders with an opportunity to realise their investments in New Century REIT for cash at a premium to the trading price of the units. We are seeing a growing momentum around the REIT investing scene in Asia and are well positioned to support companies on related transactions with our strong credentials and expertise in this area.”
Dechert previously advised New Century Asset Management Limited on a number of corporate and M&A transactions, including the listing of New Century REIT on Hong Kong Stock Exchange in 2013.
About Dechert
Dechert is a leading global law firm with 24 offices around the world. We advise on matters and transactions of the greatest complexity, bringing energy, creativity and efficient management of legal issues to deliver commercial and practical advice for clients.
