Baker McKenzie FenXun Joint Operation Office ("Baker McKenzie FenXun" or the "Joint Operation") recently assisted Shui On Land Limited ("Shui On Land") with the sale of a 49.5% interest in one of its residential real estate portfolios in Shanghai for approximately RMB 4.59 billion to further its strategic partnership with Joy City Property Limited ("Joy City"), a member of the COFCO group. 

Alex Gong, Partner of Baker McKenzie FenXun Shanghai and Rico Chan, Partner of Baker McKenzie Hong Kong were the lead external counsels assisting Shui On Land to close this transaction successfully.

The portfolio includes two undeveloped residential projects in Rui Hong Xin Cheng, Hongkou district, Shanghai. The transaction involves a complex A/B share structure, and various operating, holding and joint venture companies in four juridisctions. It enables Shui On Land to continue to pursue its asset light strategy with the aim to improve asset turnover, realize value appreciation and form strategic partnerships with long-term partners. 

Shui On Land is a property development company established in 2004 under the Shui On Group. With a focus on high-quality residential, office, retail, entertainment and cultural properties, Shui On Land is running projects at prime locations of key cities in Mainland China, many of which are operated under the world-famous Xintiandi brand which it owns. 

The COFCO group is one of the largest state-owned enterprises in the PRC with principal business activities including grain, oil, food, finance and real estate. Joy City is the flagship of COFCO's real estate business, mainly engaging in the development, operation, sales, leasing and management of mixed-use complexes and commercial properties, such as shopping malls, hotels, offices, serviced apartments and resort and tourism property.  

Baker McKenzie FenXun is a world-leading China legal platform that delivers integrated international and PRC legal services. Established in 2015, the Joint Operation is staffed by both PRC-admitted attorneys from FenXun Partners and overseas-admitted attorneys from Baker McKenzie. Attorneys of Baker McKenzie Fenxun advise leading Chinese and foreign companies on both China domestic and cross-border transactions, as well as on legal issues in real estate and many other business sectors.