ABL Advises on RMB 8.5 Billion Relief Financing for Bund Dongjiadu Project in Shanghai
2023-03-309028ABL successfully advised on RMB 8.5 billion relief financing for the Bund Dongjiadu Project, a transformative urban development in the heart of Shanghai. By offering specialized legal expertise in merger and restructuring transactions, ABL helped revitalize this stalled development, address pressing public welfare concerns, and support government initiatives to stabilize the real estate market.
Revitalizing a Landmark Development
Located in the prime Huangpu District along the Bund, the Dongjiadu Project comprises three undeveloped plots spanning a total of 99,800 square meters. This ambitious project, which requires the relocation of 4,400 households and 280 enterprises, had been stalled due to significant market adjustments and financial challenges. Recognizing its importance, the Huangpu District Government prioritized the revitalization of the site as part of its broader efforts to foster economic stability and urban development.
Government Collaboration and Strategic Financing
The Dongjiadu Project reflects Shanghai’s broader commitment to stabilizing the real estate market in line with the goals of the 20th National Congress. To advance the initiative, the Huangpu District Government partnered with a consortium of six banks and a trust company, employing innovative financial strategies such as mergers, restructuring, risk segregation, and rescue financing.
The project used a "stock + debt" model to balance the interests of key stakeholders, including local government, financial creditors, and developers. This financing approach restored stakeholder confidence, ensured necessary funding, and addressed critical objectives such as ensuring timely home deliveries and enhancing public welfare. The project also provided a significant boost to Shanghai’s real estate market and broader economy.
ABL’s Role in the Relief Project
ABL played a pivotal role in guiding the transaction to completion, delivering a range of legal services essential to its success. The firm designed the transaction structure, conducted comprehensive legal due diligence, drafted and reviewed contractual agreements, and provided strategic advice to facilitate project delivery. These efforts were instrumental in navigating the complex legal and financial landscape associated with the project.
A Testament to Legal Excellence
The successful execution of the Bund Dongjiadu Project underscores ABL’s ability to manage high-profile transactions and address intricate legal challenges. The project was led by senior partner Fang YE, with attorney Yi ZHU overseeing its execution. Attorneys Danni GU and Yueqiu ZHANG, along with team members Xinfa ZHENG and Yuning TAN, contributed significantly to ensuring the transaction’s seamless progress.
ABL is proud to have played a crucial role in the revitalization of this landmark development. This achievement reaffirms ABL’s commitment to providing innovative legal solutions and its leadership in managing complex real estate and financing transactions, further supporting Shanghai’s economic and urban growth.
