The law firm’s Hong Kong REIT Group advised ARA Asset Management (Prosperity) Limited, on the HK$43 ($7.024) million acquisition of two properties in Hong Kong through its Prosperity REIT.

These included the sale and purchase agreements to buy the entire 10th floor and parts of the 26th floor of Prosperity Center, a 26-storey industrial office block in Kwun Tong, Kowloon. This will increase Prosperity REIT’s ownership of Prosperity Center to approximately 53.4 per cent.

The law firm’s team was led by corporate partner Milton Cheng and Debbie Cheung, a partner in the property group. They had responsibility for legal structuring and documentation, legal due diligence, regulatory liaison.

“The deal is noteworthy as it is the first follow-on acquisition by a Hong Kong-listed REIT. Together with other developments in the market, we hope that this deal will help to spur renewed interest in the Hong Kong REIT market,” Cheng said.

The firm said Prosperity REIT was the first private sector REIT to list in Hong Kong, with its initial portfolio of Hong Kong office and industrial properties valued at around HK$4.5 billion ($735 million).

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Prosperity raised around HK$2.7 billion in its December 2005 IPO, and HK$1.9 billion was raised in debt to finance the purchase of the intitial portfolio of properties.