JSM advised ESR Group Limited (ESR) (HKEX Stock Code: 1821), through its wholly-owned subsidiary, on the formation of a joint venture with Chinachem Group (Chinachem), with a total capital commitment from shareholders of up to HK$14 billion (approx. US$1.79 billion), to develop a prime cold storage and logistics facility in Kwai Chung, Hong Kong.
ESR is the largest real asset manager in Asia Pacific. In partnership with Chinachem, a leading property developer in Hong Kong, ESR plans to develop a seven-story facility on the site to answer the growing demand for storage space driven by the rise of e-commerce in Hong Kong.
Last month, ESR won the rights to the 55,245 square-meter site through a government tender, which JSM also advised on.
A club of five lenders comprising UOB, SMBC, MUFG, OCBC and CITIC Bank will provide the term loan facilities to fund the winning bid by ESR. The successful execution and delivery of this financing as well as the joint venture formation, which we advised on in just three weeks, is a testament to the strength and depth of the firm’s capability in the real estate sector.
The team was led by Hong Kong-based Real Estate finance partners Peter Ho and Eugene Wong and included: Real Estate – associate Noah Chung; Corporate & Securities – partner Chester Wong; and Real Estate partner Alvin Yeung.
