Dacheng Attorneys Advise on Beijing Real Estate Debt Investment Program

On February 11 2012, Beijing Real Estate Debt Investment Program Trustees and Joint Beneficiaries Conference was held in Pu’er, Yunnan. Over twenty financial institutions, including the program’s trustees, beneficiaries, custodian bank, independent oversight entity and capital account managers, attended the conference. Dacheng senior partner Duan Aiqun was also invited to the conference as legal advisor for the program.
 
Beijing Real Estate Debt Investment Program (also known as “Lande Program”) set to finance land reserve development and the construction of indemnificatory housing for Beijing Municipal Bureau of Land and Resources and its Land Consolidation and Reserve Center. It included seven debt investment projects entrusted respectively to seven insurance asset management companies headed by Pacific Asset Management Co., the other six being China Life, Ping An Insurance, PICC, Taikang, China Taiping and Huatai Insurance. China Everbright Bank served as custodian, Industrial Bank as independent oversight entity, Agricultural Bank of China and Bank of Beijing as capital account managers. The seven debt investment projects, aiming to raise a total of RMB50bn, have to date RMB23bn in place. As the largest ever insurance fund-backed debt investment program and with the participation of over 20 financial institutions, the beneficiaries included, it is considered an important financial and structural innovation with profound influence.
 
Mr. Duan signed legal service contracts with each of the seven insurance asset management companies and was committed to acting as chief legal advisor on the projects in their seven-year duration.
 
Mr. Duan has been a key drafter for “Measures for Insurance Fund Invested in Real Estates”, “Measures for Insurance Fund Invested in Equity” and “Measures for Insurance Fund Invested in Infrastructure”. Acting as legal counsel for the above-mentioned projects, Mr. Duan and his team undertook tasks such as deal structure design, arrangement of transaction procedures and joint management pattern, document drafting, negotiations and issuance of legal opinions. The attorneys’ performance was highly regarded by the seven insurance asset management companies and China Everbright Bank, Agricultural Bank of China, Industrial Bank and Bank of Beijing as well as Beijing Land Consolidation and Reserve Center.