Zhong Lun Law Firm has represented SOHO China Ltd in its 4 billion yuan ($633 million) purchase of 50 percent interest in Shanghai’s most expensive property development project, the Bund 8-1 Land.
In this transaction, SOHO took over 50 percent shares of the project’s joint venture developer, Shanghai Haizhimen Real Estate Ltd, from its shareholders Shanghai Zendai Real Estate Company Ltd, Greentown China Holdings Ltd, and Shanghai Panshi Investment Management Co Ltd. Privately owned Fosun International Ltd indirectly holds the other 50 percent stakes.
The 45,472 square metres Bund 8-1 Land has a premium location between Yuyuan Garden and the Shiliupu Expo water gate in Shanghai’s Huangpu district. It is located in the historic Bund area facing the Lujiazui Global Financial Centre and Jinmao Tower across the Huangpu River in Pudong. Zendai won the bid for the land in early 2010 at a record high of 9.22 billion yuan ($1.46 billion), which remains the top price in Shanghai’s land auction history.
However, the project has got stranded because of fund shortage under the credit tightening policy, and state control over the real estate price. SOHO, which claims to have 17 billion yuan ($2.69 billion) in cash, said this is a “perfect opportunity” to take over the “king of land” from debt-laden Greentown and Zendai.
Zhong Lun has served as the strategic legal advisor to SOHO China since the latter’s establishment in 1995. In this transaction, the Zhong Lun team was headed by the firm’s Beijing partner Hao Han who specialises in real estate litigations. Hao and his team provided advice on various aspects of the deal such as the design of transaction structure over the one-month long negotiation period. ALB
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