Kim & Chang advised the National Housing Funds (“NHF”) and the Korea Land and Housing Corporation (“LH Corporation”) on the establishment of five real estate investment trust companies (each, a “REIT”) to develop government-sponsored rental housing (“Public Housing”).
The transaction was significant, because it was a large-scale public house project that was made possible by public funds and loans from private financial institutions. REITs acquired the land sites from LH Corporation. In addition to a total of KRW 416 billion in equity investments from the NHF and LH Corporation, the REITs obtained a total of approximately KRW 2 trillion in loans from various financial institutions, among which some were securitized through asset-backed securitization transactions.
Kim & Chang’s Real Estate & Construction Practice successfully advised on this series of transactions by providing comprehensive legal advice at all stages, including optimal deal structuring to ensure compliance with all Korean REIT Act and the Public Housing Act requirements. Leveraging our deep network and unparalleled experience from similar public-private multiparty investment projects, we facilitated effective communication between the public sector and the private sector.
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