Baker & McKenzie Advises Canada Pension Plan Investment Board on its First Direct Real Estate Investment in Hong Kong

Baker & McKenzie recently acted for the Canada Pension Plan Investment Board (“CPPIB”) on its acquisition of 50% of the shares in Hong Kong Interlink from Goodman Group, one of the world’s largest listed fund managers specializing in industrial and business properties with whom CPPIB has a long-standing relationship. The gross purchase price of CPPIB’s interest is approximately CAD285 million (HKD2.26 billion). CPPIB is making an equity commitment of approximately CAD205 million and assuming debt of approximately CAD80 million to purchase the 50% interest.  The other 50% of Hong Kong Interlink will be owned by the Goodman Hong Kong Logistics Fund.

Interlink is a 2.4 million ft2 industrial facility, which comprises of a warehouse and distribution centre, that is situated in a prime industrial location in the heart of Hong Kong’s logistics hub and within close proximity to Hong Kong’s international airport. Interlink, which is scheduled for completion in January 2012, is the first major logistics facility to be developed in Hong Kong in almost a decade and one of the largest industrial developments currently being undertaken anywhere in the world.

The multi-disciplinary Baker & McKenzie team was led by Hong Kong-based PE/M&A partners Cheung Yuk Tong and Dorothea Koo, and also involved lawyers from the Firm’s banking & finance and real estate groups.

Commenting on the transaction, Dorothea Koo said, “We are delighted to have the opportunity to work with CPPIB on its first direct real estate investment in Hong Kong.”