Against the backdrop of cyclical changes in the real estate industry, Tian Yuan continues to provide pragmatic and efficient legal services to clients focusing on areas such as debt restructuring, asset revitalization, and urban renewal. The firm assists in advancing the implementation and risk mitigation of multiple key projects, steadily realizing project value and transaction objectives in complex deals.
- Assisting Western Trust in Launching Multiple Market-Oriented Restructuring Service Trust Projects for Real Estate
Tian Yuan Shenzhen recently assisted Western Trust Co., Ltd. in successfully establishing the Western Trust·Huanxin No. 3 Restructuring Service Trust ("Huanxin No. 3") and the Western Trust·Phoenix No. 5 Restructuring Service Trust ("Phoenix No. 5").
Huanxin No. 3 is the first specialized restructuring service trust in the trust industry focusing on the restructuring of public bonds of real estate enterprises. It aims to cooperate with Shenzhen Logan Holdings Co., Ltd. (a wholly-owned subsidiary of Logan Group) to implement the "debt repayment with assets" scheme under its restructuring proposal for 21 corporate bonds and asset-backed securities, marking significant industry innovation. The establishment of this trust product not only provided a market-oriented innovative solution for Logan Group's onshore debt resolution but also successfully filled an industry gap in trust services for onshore bond restructuring, offering an important reference for the design and implementation of bond restructuring plans.
Phoenix No. 5 fully leveraged the legal advantages of trusts in asset segregation and structural arrangements, effectively integrating the restructuring service trust into the revitalization mechanism for distressed real estate. The establishment of Phoenix No. 5 aims to implement the relief work for ensuring housing delivery in the Jiangmen area. It holds significant social value in safeguarding local livelihoods, stabilizing the regional market, and promoting a virtuous cycle in the real estate industry, and also provides a practical reference for the revitalization of existing assets and debt resolution for distressed enterprises.
Prior to joining Tian Yuan, the legal team led by Mr. Deng Weifang assisted Western Trust in June 2022 in pioneering the establishment of the Western Trust·Phoenix No. 1 Restructuring Service Trust, which had significant market and industry influence. The assets revitalized through this trust were primarily Kaisa Group's real estate projects in the Shenzhen area, including the recently launched and popular CITIC Xinyue Bay project.
- Representing Clients in Litigation Cases Involving Bulk Property Transactions and Completing Compulsory Title Transfer of Involved Properties
Tian Yuan Shenzhen recently represented a client in a dispute over a bulk property transaction involving a commercial complex project in the core area of Shenyang. The team secured a favorable final judgment and, through compulsory enforcement procedures, completed the title transfer registration for several hundred involved shop and office units, successfully mitigating the risk arising from the long-term uncertainty over the title of the original properties.
The project involved is located at the intersection of Qingnian Street and Wenyi Road in Shenyang's core district, a regional landmark complex integrating Grade-A office space, a five-star hotel, a culture and arts shopping center, and high-end luxury residences. In the disputes related to this project, the developer maliciously delayed handling the title transfer registration procedures for over a decade, creating numerous obstacles that left the client's property rights in a state of uncertainty. After being retained by the client, the Tian Yuan Shenzhen legal team initiated litigation and preservation procedures for the case. Following first instance and second instance trials, they assisted the client in obtaining a favorable judgment, successfully achieving the client's core commercial objective of completing the property title transfer registration.
Furthermore, other related series of cases are also in progress. The total contract value of the properties involved in this series of cases exceeds RMB 4 billion.
- Assisting Client in Major Acquisition of Shenzhen Cultural and Creative Park Urban Renewal Project
Additionally, the legal team led by Mr. Deng Weifang recently assisted China Construction Yipin Investment Company in successfully bidding for 100% equity and creditor's rights of Shenzhen Fujia Construction Development Co., Ltd., thereby acquiring the development rights for the Futian District Cultural and Creative Park urban renewal project. This marked the first urban renewal + equity transfer project and the first core urban district development project undertaken by the China Construction system in Shenzhen. The project site is located in the Shatou area, a core area of Shenzhen's Futian District, with a total gross floor area of approximately 300,000 square meters and a total investment exceeding RMB 8 billion.
Tian Yuan Shenzhen has extensive project experience in the field of urban renewal, having provided specialized legal services to various clients, including financial asset management companies, real estate companies, and private equity funds, for the acquisition and restructuring of multiple urban renewal projects in the Shenzhen area.
The lead partner for the above projects/cases was Mr. Deng Weifang, with the team comprising Cai Xiguang, Zhang Chu'ao, He Ran, and other members.
