HONG KONG - The Banking & Finance team of the Reed Smith Hong Kong office recently advised Fortune REIT and its manager ARA Asset Management (Fortune) Limited on its maiden five-year sustainability-linked term facility aggregating HK$1 billion from DBS Bank.

Related Professionals: Michael Sinn

Victoria Harbor of Hong Kong city at night

The bilateral loan facility, which was signed on 23 October 2020, is Fortune REIT’s first sustainability-linked loan and marks an important milestone for reinforcing Fortune REIT’s long-term sustainability commitment and strategy. Under the terms of the sustainability-linked loan facility, Fortune REIT would be eligible for interest rate savings upon achieving pre-determined environmental, social and governance (ESG) targets with emphasis on greenhouse gas emission, energy consumption and waste management of Fortune REIT’s business in Hong Kong. 

The proceeds of the bilateral loan facility will be used to refinance existing facilities of Fortune REIT and to finance the general corporate funding needs of Fortune REIT. 

Fortune REIT is a real estate investment trust which was established in 2003 and is the first REIT to hold assets in Hong Kong.  It is currently listed on the Main Board of the Hong Kong Stock Exchange and holds a portfolio of 16 private housing estate retail properties in Hong Kong, including Fortune Metropolis (Hung Hom), Fortune City One (Shatin) and Metro Town (Tseung Kwan O).  Fortune REIT is managed by ARA Asset Management (Fortune) Limited, which is a wholly-owned subsidiary of ARA Asset Management Limited, being one of the largest real estate fund managers in Asia Pacific.  

The HK Banking and Finance team was led by Michael Sinn (Partner) with the support of Carrie Lam (Associate) and Mori Cheng (Trainee Solicitor).