Restructuring




Trophy Property Development Fund

WMG’s Chairman Mehmet Dalman owned the General Partner of Trophy Property Fund (“TPD” or the “Fund”), a $1 billion China-focused private equity real estate fund, taking over responsibilities from the previous General Partner.

The team completed a highly complex restructuring of TPD, having assumed management control of the Fund with near-unanimous support from its Limited Partners in December 2012.

Having originally invested $819 million in five JV developments with Shui On Land (“SOL”), TPD’s NAV declined to $415 million. Without a restructuring, and with no ability to determine the completion of developments or the payment of distributions, TPD would likely have seen a further deterioration in NAV.

The Team subsequently negotiated, structured and completed a comprehensive asset swap with SOL and led an auction process to provide liquidity for Limited Partners.

Pursuant to the asset swap, TPD became owner of TPQ 116, a prime residential development project in Shanghai.

In 2015 TPD was sold to Apollo Global Management in a deal, which is forecast to generate net proceeds to TPD’s Limited Partners of approximately $740 million.

TPD’s restructuring involved the evaluation and exchange of five mixed-use projects totaling 6 million square meters of GFA for a majority interest in TPQ 116.

Rainbow City

Project

Rainbow City, Shanghai

GFA 1,250,000 sqm
Investment

$212 million

Ownership 20.2%

Taipingqiao 116

Project

Taipingqiao 116, Shanghai

GFA 87,000 sqm
Investment

$192 million

Ownership 49.0%

Chongqing Tiandi

Project

Chongqing Tiandi, Chongqing

GFA 2,780,000 sqm
Investment

$115 million

Ownership 19.8%

Wuhan Tiandi

Project

Wuhan Tiandi, Wuhan

GFA 1,396,000 sqm
Investment

$154 million

Ownership 25.0%

Commercial Cluster

Project

Commercial Cluster, Chongqing

GFA 515,000 sqm
Investment

$147 million

Ownership 25%

TPQ 116 Development Site, Shanghai

The TPD restructuring preserved as much value as possible for Limited Partners, with the asset swap providing a clear “path to liquidity” and 18% increase in NAV.

Rainbow City

Project

Rainbow City, Shanghai

GFA 1,250,000 sqm
Investment

$212 million

Ownership 20.2%
 
 

Taipingqiao 116

Project

Taipingqiao 116, Shanghai

GFA 87,000 sqm
Investment

$192 million

Ownership 49.0%
 
 

Wuhan Tiandi

Project

Wuhan Tiandi, Wuhan

GFA 1,396,000 sqm
Investment

$154 million

Ownership 25.0%

TPQ 116 Development Site, Shanghai

The TPD restructuring preserved as much value as possible for Limited Partners, with the asset swap providing a clear “path to liquidity” and 18% increase in NAV.

Chongqing Tiandi

Project

Chongqing Tiandi, Chongqing

GFA 2,780,000 sqm
Investment

$115 million

Ownership 19.8%
 
 

Commercial Cluster

Project

Commercial Cluster, Chongqing

GFA 515,000 sqm
Investment

$147 million

Ownership 25%