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Paul, Weiss Advises KKR on First Investment in Chinese Real Estate Sector
In a transaction that marks KKR's first investment in the Chinese real estate sector, KKR China Growth Fund L.P. (KKR) has established a targeted investment fund with Gemini Investments (Holdings) Limited (Gemini), a Hong Kong-listed company primarily engaged in property and securities investment. Affiliates of KKR and Gemini have each agreed to make a capital commitment of US $70 million to Sino Prosperity Real Estate Fund L.P. (the Fund).
Paul, Weiss also advised the Fund on an Investment Cooperation Agreement with Sino-Ocean Land (Hong Kong) Limited (SOL), a wholly-owned subsidiary of Sino-Ocean Land Holdings Limited, one of the top ten PRC real estate companies listed in Hong Kong. Under the agreement, the Fund will have the right to participate in projects with SOL, or its affiliates, up to an aggregate maximum amount of US$500 million. The Investment Cooperation Agreement features tailored and innovative mechanisms for exercising the Fund's participation right, and an exit settlement arrangement the Fund may trigger upon majority completion of a project. The Fund also agreed to acquire a 49 percent interest in a project currently being developed by SOL for a total consideration of US $64.3 million.
The Paul, Weiss team advising on the establishment of the Fund and its agreements with SOL includes corporate partners John (Jack) E. Lange and Yvonne Y.F. Chan, real estate partner Mitchell L. Berg, and corporate counsel Hans-Günther Herrmann.