On January 25, 2021, the Huaxi Securities - Huayu Group Commercial Property Asset Support Special Program (the “Special Program”), in which Chongqing Erui Real Estate Development Co., Ltd., a subsidiary of Chongqing Huayu Group Co., Ltd., acted as the originator and Huaxi Securities Co., Ltd. acted as the program manager, was successfully issued on the Shanghai Stock Exchange, with the total scale thereof hitting RMB1.272 billion and for a term of 19 years. Under the Special Program, the scale of the preferred class A issuance is RMB850 million, for a term of 19 years, with a AAA rating and a coupon rate of 5.5%; the scale of the preferred class B issuance is RMB358 million, for a rolling term every three years, with a AA+ rating and a coupon rate of 6.5%; and the scale of the subordinate class issuance is RMB64 million. The Special Program is the first-ever "Single-layer SPV"-structured CMBS of commercial assets category in Southwest China.
The underlying assets of the Special Program are commercial properties such as Chongqing Huayu Square, Chongqing Brocade Square and Wyndham Hotel in Chongqing. The successful issuance of the Special Program is an innovative attempt of Huayu Group to revitalize its stock assets, which could help Huayu Group to revitalize its stock assets, improve its financing structure, effectively expand its financing channels, reduce its financing costs and enhance its financing efficiency and could provide it with sufficient cash reserves and assist its development acceleration. As the first-ever "Single-layer SPV"-structured CMBS of commercial assets category in Southwest China, the Special Program has a demonstration effect of innovation and is providing new ideas for the operation mode of commercial assets.
Huayu Group, established in 1995, is a large diversified operation group integrating real estate group, (Huayu Youjia) intelligent service life group, construction group and financial holding group. Huayu Group was ranked 46th in comprehensive strength of China's Top 100 Real Estate Enterprises in 2019, are among the China's Top 100 Real Estate Development Enterprises in China, and has been among the China’s Top 10 Real Estate Development Enterprises in Business Performance for 6 consecutive years, the China’s Top AAA Credit Enterprises for 18 consecutive years and the China’s Top 100 Private Enterprises in Service Industry and the China’s Top 500 Private Enterprises in 15 consecutive years. It holds both the China’s Class-1 real estate group qualification and the China’s Class-1 building construction qualification, and is the Vice President (corporate) of the China Real Estate Association (CREA) and the he Vice President (corporate) of the China Property Management Institute (CPMI).
JunHe LLP, as the legal counsel to Huayu Group under the Special Program, fully participated in the deal structuring and legal argumentation, DD investigations, drafting, revision and finalization of all transaction documents, issuance of legal opinions, etc., and provided comprehensive legal services to Huayu Group.