DBS: Hong Kong leads acquisition of Yuexiu REIT valued at RMB 7.8 billion with its first green club loan
Hong Kong, 08 March 2022 – DBS Hong Kong announced that Yuexiu REIT (stock code: 00405), the platform REIT of Yuexiu Group, has concluded its first green club loan worth HK$4.8 billion to finance the acquisition of Yuexiu Financial Tower. DBS Hong Kong is appointed green loan advisor, financial advisor, placement agent, lead arranger and lending bank to Yuexiu REIT in connection with this historic acquisition.
Worth RMB 7.8 billion, the transaction is expected to improve the overall quality of Yuexiu REIT’s portfolio, making it the largest REIT listed in Hong Kong and Singapore with a Chinese portfolio. The Yuexiu Financial Tower is a 68-storey Premium Grade A office building strategically located in Zhujiang New Town, the central business district and commercial center of Guangzhou, and one of the ten tallest skyscrapers in Guangzhou. The green club loan requirement for acquisition financing includes the building achieving “Gold” or higher certification from the U.S. Green Building Council for Leadership in Energy and Environmental Design, which evaluates its efficiency and its management of water, waste and energy.
The acquisition is an important step in Yuexiu REIT’s shift towards green financing. It further demonstrates Yuexiu REIT’s contribution to the Yuexiu Group’s sustainability goal for implementing innovative environmental practices.
Lin Deliang, Chairman, Managing Director and CEO of Yuexiu REIT, said: “To promote green development and contribute to China’s peak and carbon neutral goals, we will continue to push for improved environmental management. Our first green club loan coordinated by and cooperated with DBS underscores our commitment to putting Guangzhou’s ecological environment as a priority to help strengthen the city’s competitiveness and build a resource-saving and environmentally friendly society.”
Alex Cheung, Managing Director and Head of Institutional Banking Group of DBS Hong Kongsaid, “As one of the leading REIT companies in Hong Kong and Singapore, Yuexiu REIT has one of the fastest growing China-based portfolios. DBS Hong Kong is delighted to be part of Yuexiu REIT’s green journey with its first green club loan utilizing our expertise in sustainable finance advisory. We hope to continue to help them make a more meaningful and green impact in their real estate business and beyond.”
DBS is a leading financial services group in Asia, present in 18 markets. Headquartered and listed in Singapore, DBS is present in all three major Asian growth areas: Greater China, Southeast Asia and South Asia. The bank’s “AA-” and “Aa1” credit ratings are among the highest in the world.
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With its extensive network of operations in Asia and a focus on engaging and empowering its people, DBS presents exciting career opportunities. For more information, visit www.dbs.com.
About Yuexiu Real Estate Investment Trust
Yuexiu Real Estate Investment Trust (“Yuexiu REIT”) was listed on the Hong Kong Stock Exchange of Hong Kong Limited on December 21, 2005 and is the first listed real estate investment trust to invest solely in properties in the People’s Republic of China ( the “PRC”) in the world.
Yuexiu REIT focuses on office, retail and other business purposes, strives to find properties that can bring significant cash flow and returns, and identifies business opportunities to achieve higher revenue growth thanks to the optimization of its operations.
The current property portfolio includes nine high-quality properties, namely White Horse Building, Fortune Plaza, City Development Plaza, Victory Plaza, Guangzhou International Finance Center and Yuexiu Financial Tower in Guangzhou, Yuexiu Tower in Shanghai, Wuhan Properties in Wuhan and Victory Business Center in Hangzhou, with a total property area of approximately 1,183,284 square meters. All properties are located in the Central Business District (“CBD”) of Guangzhou, Shanghai, Wuhan and Hangzhou respectively. Property categories include business apparel market, Class A offices, multiple functional commercial offices, retail, hotels and serviced apartments, etc. The manager of Yuexiu REIT is Yuexiu REIT Asset Management Limited (“Manager”). Yuexiu REIT is managed by a team of experienced professionals with extensive experience in real estate management, asset management and the securities market and provides long-term and stable investment income to Unitholders (“Unitholders “) of Yuexiu REIT through the active management of its assets and the expansion of its operations. As the real estate investment trust market is booming, the manager is committed to becoming a professional asset management institution focused on the commercial real estate market in the PRC, continuous asset appreciation capability, commercial operating capability, capital operating capability and industry leadership position. .