Cheung Kong has today completed the sale of five Hong Kong shopping malls to Fortune Real Estate Investment Trust (Fortune REIT), a new real estate investment trust to be established in Singapore and listed on the Singapore Stock exchange.

Freshfields Bruckhaus Deringer advised DBS Bank - the transaction's global co-ordinator, lead underwriter and sole bookrunner - for the deal. The offers were fully underwritten by DBS Bank, Citigroup and Credit Suisse First Boston. 

"It was an exciting opportunity to have worked with DBS and Cheung Kong on this deal as it's the first ever REIT transaction involving Hong Kong properties," commented head of Freshfields Bruckhaus Deringer's Asian structured finance group, Clive Rough, who is based in Hong Kong.  "We expect to see a lot more activity in the REIT sector in Hong Kong, particularly now that the SFC has recently issued its own guidelines for REITs in Hong Kong."

Baker & McKenzie's Milton Cheng, lead partner advising Cheung Kong, commented: "We believe this deal, particularly in light of the recent introduction of REIT regulatory framework in Hong Kong, leads the way for similar transactions in Hong Kong." Cheng was assisted principally by senior associate Jason Ng.

The offer proceeds - an approximate total of HK$1.038bn - together with monies raised from the subscription of units by Cheung Kong and other strategic investors were primarily used to fund the purchase of the five Hong Kong shopping malls from Cheung Kong.

Freshfields Bruckhaus Deringer put together a multi-office team for the project, advising out of Hong Kong and also out of Freshfields Drew & Napier in Singapore.  The Hong Kong team was led by partner Clive Rough while the Singapore team was led by Singapore managing partner David Simpson.  Drew & Napier partner Evelyn Wee and associate Danny Tan were also members of the Singapore-based team.