China Merchants Securities (HK) Co., Limited (“CMS (HK)”, a subsidiary of China Merchants Securities International Company Limited), acted as the sole financial adviser to China Merchants Land Asset Management Co., Limited (“Manager”, a company ultimately wholly-owned by China Merchants Land Limited (Stock Code: 978.HK, “CML”)) in respect of the purchase of 51% of a target company, representing a 46.41% effective interest in multiple units in Onward Science & Trade Center (招商局航华科贸中心) located in Guomao CBD, Chaoyang, Beijing by China Merchants Commercial Real Estate Investment Trust (“CMC REIT”, Stock Code: 1503.HK). The 100% property value as agreed between the CMC REIT and the vendor of RMB 2.7 billion represented a discount of approximately 1.1% to the appraised value of RMB 2.73 billion as assessed by Cushman & Wakefield Limited as of 31 March 2022.
Onward Science & Trade Center is a 320,000 sq.m. integrated property development, consisting of 4 office towers and 2 apartment buildings as well as the podium located in Guomao Central Business District. Completion of the acquisition took place on 30 June 2022. The initial consideration for the acquisition is approximately RMB1.34 billion and following completion of the Acquisition, CMC REIT successfully expands its portfolio from Shenzhen to other top tier cities in Mainland China and the total assets of CMC REIT exceeds RMB10 billion.
CMS (HK) has provided comprehensive advisory services to the Manager in various aspects, including but not limited to giving financial and regulatory advice to the Manager in relation to commercial negotiations, formation of transaction structure, financing arrangement, coordinate works among various professional parties and assist the Manager in obtaining regulatory approval and handling compliance matters.
About CMC REIT
CMC REIT is a Hong Kong collective investment scheme constituted as an unit trust and authorised under section 104 of the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong). CMC REIT is a Real Estate Investment Trust formed to primarily own and invest in high quality income-generating commercial properties in the PRC (including Hong Kong and Macao but excluding the CML Cities), focusing on (i) the Greater Bay Area (other than Foshan and Guangzhou, being two of the CML Cities), which is where the Existing Properties are situated; and (ii) Beijing and Shanghai. CMC REIT is managed by the Manager whose key investment objectives are to provide unitholders of CMC REIT (“Unitholders”) with stable distributions, sustainable and long-term distribution, sustainable and long-term distribution growth, and enhancement in the value of the properties owned by CMC REIT.
About the Manager
The Manager is an indirect wholly-owned subsidiary of CML. The Manager has the general power of management over the assets of CMC REIT and the Manager’s main responsibility is to manage the assets of CMC REIT for the benefit of the Unitholders.