Baker & McKenzie advises Champion REIT on its US$1 Billion Guaranteed Medium Term Note Programme

More capital management measures expected in the coming months.

Baker & McKenzie is advising Champion Real Estate Investment Trust ("Champion REIT") on its US$1 billion guaranteed medium term note programme. The Hongkong and Shanghai Banking Corporation Limited is the arranger for the notes programme.

Milton Cheng, partner and head of the Firm’s REIT practice in Hong Kong and China, and Andrew Lockhart, partner and co-head of the banking & finance practice, led the Baker & McKenzie team advising Eagle Asset Management (CP) Limited, the REIT Manager. The team also included associates Jeremy Ong, Eric Lim and Erica Jiang.

Corporate partner Jason Ng led the team acting for HSBC Institutional Trust Services (Asia) Limited, the REIT Trustee, and was assisted by associate Grace Fung.

Commenting on the deal, Milton Cheng said, "We are delighted to have the opportunity to assist our long- standing client, Champion REIT, on this significant debt capital markets transaction. The MTN programme is a particularly useful financing tool for real estate investment trusts as it gives them the ability to tap the debt
capital markets swiftly and conveniently to raise money for their acquisition or other debt financing needs."

Andrew Lockhart added, "We have seen a number of notes and related debt capital markets issuances in Hong Kong over the last six months, mainly driven by demand from investors for quality debt securities offering good yields and the continuing challenges in the bank lending market. We are seeing many REITs as well as companies across the region take a close look at their capital and financing needs, and expect that there will be a trend towards more such capital management measures in the coming months."

Baker & McKenzie's Asia-Pacific REIT Group has been at the forefront of ground-breaking REIT transactions in Asia. The team has been involved in almost all of the significant transactions to date involving REITs listed or with assets in Hong Kong – including Champion REIT’s IPO, follow-on acquisitions, placements and convertible bonds issuances; Yuexiu REIT’s IPO and follow-on acquisitions and financings, including its recent investment in Guangzhou International Finance Center; The Link REIT’s medium-term note programme and its property acquisitions; Fortune REIT’s IPO, its dual primary listing in Hong Kong by way of
introduction, follow-on acquisitions and financings; Hui Xian REIT’s IPO, the first RMB denominated REIT to be listed in Hong Kong; Regal REIT’s follow-on acquisitions; Prosperity REIT’s IPO and follow-on acquisitions and financings; Sunlight REIT’s IPO; and RREEF China Commercial Trust’s IPO.