Dacheng assists AIA Life in Acquiring Beijing Kaide Xingmao Tower

Project Introduction

Kaide Xingmao (formerly known as Tower A of Borui Tower), located near Tuanjiehu Hu, East Third Ring Road, Chaoyang District, Beijing, located at the intersection of Central Business District, Yansha Business District and Sanlitun Business District, with a total construction area of approximately 80,000 square meters. Kaide Xingmao will be acquired by Kaide Group through judicial auction in October 2022. In 2023, AIA Life utilizes insurance funds to acquire Kaide Xingmao for a total transaction value of approximately 2.4 billion yuan.

Upon entrustment by AIA Life, Mr. Wu Chenyao of Dacheng, Mr. Wu Chenyao, Mr. Zhou Jing, Mr. Dai Jianmin and Mr. Deng Zhisong formed a team to provide comprehensive real estate, insurance, and antitrust legal services to the transaction of this project. After nearly a year of negotiation and preparation, the team assisted AIA Life in completing the execution of transaction documents and closing of the project.

Project Highlights

This project is a typical case of reorganization and nirvana for distressed assets in the post-epidemic era. The project was once subject to judicial auction due to the debts of the original owner, and the operation fell into a downturn. After two rounds of acquisition and merger by Kaide and AIA, and comprehensive sorting and planning of the historical problems of the assets, together with the combination and the complementary advantages of the two leading companies, the distressed assets have been revitalized, breathing new life into the recovery of the market, and providing new solutions for enhancing and upgrading the existing assets in the stock era.

This project represents an important practice for the completion of acquisition and merger in the context of capital asset management from a full life-cycle perspective of real estate. In the Transaction, Kaide Investment, as the asset management party, retains a portion of rights and interests at the project level, and has entered into a long-term multiple cooperation mechanism of "equity + asset management + property services" with AIA Life pursuant to which Kaide will continue to provide the asset-light operation and management services to the project after the completion of M&A in order to provide mid- and long-term solutions for the maintenance and appreciation of assets and the stable operation of assets.

This project is a classic case of Dacheng's cross-professional and cross-industry cooperation to output integrated legal service products. Based on the existing legal issues of real estate acquisition and acquisition, asset operation management, insurance capital direct investment and operator concentration of the project, led by lawyer Wu Chenyao, a multi-industry and multi-professional project work team has been formed across real estate (lawyers Wu Chenyao and Tang Yun), insurance capital (lawyers Zhou Jing and Meng Jiewen), anti-monopoly (lawyers Deng Zhishong, Dai Jianmin and Qu Yanfei). Work together to provide customers with comprehensive, high-precision comprehensive solutions to help the successful completion of mergers and acquisitions. Under the background of Dacheng's professional construction, this project is also a beneficial attempt to use the scale advantage and cooperation mechanism to improve the innovation ability and design integration ability of solutions, and to export all-round and high value-added legal service products to the market.

Project Features

• Stock real estate M&A upgrade

In respect of the historical problems in the hardware supporting, ownership structure and operation and management of the stock assets, the lawyer team accurately positioned and completely analyzed such problems during the acquisition process and proposed creative and constructive solutions based on legal understanding and industry experience. In addition, in order to establish an effective medium and long-term assets management mechanism, and to achieve win-win cooperation and complementary advantages between AIA and CapitaLand, on the one hand, the transaction imports into CapitaLand's rich resources and scale advantages in terms of brand management, supplier aggregation, leasing operations, IT support and human resources sharing, and on the other hand, through system building, it fully implements AIA's management requirements in terms of ESG, anti-corruption and post-investment management, so as to provide full life-cycle solutions for value maintenance, value increase and stable operation of the project in the medium and long-term.

• Risky Capital Investment in Real Property

To satisfy the regulatory requirements on direct investment of insurance funds, based on his/her extensive experience and in-depth understanding of the industry, the lawyers' team has fully analyzed and interpreted the subject matter of the transaction, the transaction model and the possible regulatory focuses in the operation of assets of the project, and provided efficient and comprehensive legal services to ensure the stability and profitability of the long-term investment of insurance funds.

• Antitrust

With the issuance of the new Antitrust Law, the regulatory institutions have enhanced the protection of healthy competition to an unprecedented height. As one of the pillar industries of the national economy, the real estate industry cannot remain uninvolved. The lawyer's team assisted the parties to the transaction in responding to the regulatory requirements in a comprehensive and active manner, and by providing efficient and accurate legal services, the lawyer's team was able to obtain the approval for the concentration of undertakings within one month after the submission of the application, thus ensuring the successful completion of this transaction in compliance with the laws and regulations.