31 August 2022

Carey Olsen advises lenders on financing backing the successful bid by ESR Group Limited in joint venture to fund Hong Kong SAR logistics facility

Carey Olsen has advised a club of five lenders (comprising UOB, SMBC, MUFG, OCBC and CITIC Bank) on the BVI law aspects of term loan facilities to fund the winning bid by ESR Group Limited ("ESR") (HKEX Stock Code: 1821), acting through its wholly owned subsidiary in 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 SAR, 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 the region.

The Carey Olsen team representing the club of lenders comprised corporate and finance partner James Webb, counsel Dan Moore, and associate Calvin Lee.

James said: "We have extensive experience in real estate, acquisition and joint venture financing in the APAC region and are very pleased to support Mayer Brown as onshore legal counsel and this key group of lenders on a very significant financing in Hong Kong SAR."

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