On October 25, 2019, Haitong Huatai-APP Shanghai Magnolia Plaza Commercial Mortgage Backed Securities (CMBS in short) were successfully issued on the Shanghai Stock Exchange, with issuing scale of RMB13.8 billion, accounting for 11.5% of the total scale of CMBS nationwide issued in the past 3.5 years and 37.20% of the total scale of CMBS nationwide issued in 2018. It is by far the largest CMBS issued in China. The original owner of CMBS interest is APP (China) Investment Co., Ltd ("APP China"), and the underlying asset is Shanghai Magnolia Plaza, the tallest building in Puxi, Shanghai.
Shanghai Magnolia Plaza is located at 588 East Changzhi Road, Hongkou District, Shanghai, along the Huangpu River on the North Bund of Shanghai. It covers an area of 56,000 square meters and has a total floor area of 420,000 square meters. It is an urban complex with diversified business integrating functions of commerce, office and hotel. In August 2017, Shanghai Magnolia Plaza won the "Magnolia Award" for 2016 Shanghai Construction Project (municipal quality project). In November 2017, Shanghai Magnolia Square won the "Luban" Award for China's Construction Project.
APP China is the largest comprehensive paper-making enterprise in the country. It is affiliated to Asia Pulp & Paper Co., Ltd (APP), a subsidiary of Indonesia's Sinarmas Group. It has three major business sectors: forestry construction, wood pulp manufacturing & paper product production and deep-processing, with pulp manufacturing & paper product production and deep processing as core business. Since 1992, APP China has focused its investment on the Yangtze River Delta and the Pearl River Delta. It has successively invested huge sums of money to set up world’s leading large pulp and paper enterprises and large-scale modern fast-growing forest areas, represented by Goldeast Paper, Ningbo Zhonghua Paper, Ningbo Asia, Gold Huasheng, Gold Hongye Paper, APP Hainan Jinhai, Guangxi Jingui, etc.
As a special legal counsel of APP, Jingtian & Gongcheng participated in the legal due diligence, design and modification of transaction structure, drafting of legal opinions and transaction documents, providing professional, efficient and meticulous legal services to client.
Asset securitization has become one of the most dynamic mature financing tools in global capital market. It is also an important technical means for China to deepen financial reform and revitalize the real economy. Jingtian & Gongcheng is one of the earliest law firms in China to provide legal services for asset securitization. After years of development, Jingtian & Gongcheng has formed a strong legal service team for asset securitization with innovative spirit, familiar with regulatory policies and rich in practical experience. The legal service team for asset securitization from Jingtian & Gongcheng has unique research experience and rich project experience in various asset securitization businesses such as credit asset securitization, enterprise asset securitization, asset-backed notes and project asset backed securitization plan under various regulatory rules in China.