Herbert Smith Freehills has advised China Development Bank International Holdings (CDBIH) on its HK$1.45 billion subscription of shares in Hong Kong- and Singapore-listed China New Town Development Company Limited.

The subscription gives CDBIH, a wholly-owned subsidiary of state-owned China Development Bank Corporation, 5,347,921,071 shares representing approximately 54.32% of the total number of shares issued. The subscription makes CDBIH the controlling shareholder of China New Town Development, a China-focused real estate developer.

The Herbert Smith Freehills team on the transaction was led by Hong Kong-based partner Gary Lock and Singapore managing partner Michael Walter. They were supported by Singapore of counsel Kwok Hon Yee, and associates Ruth Lau, Eugene Lau and Yap Cui Xian.

Gary commented: "We are delighted to have advised China Development Bank on its investment into China New Town. The transaction involved a change of control and whitewash applications with both the Securities and Futures Commission of Hong Kong and the Securities Industry Council of Singapore so we were able to seamlessly assist our client by leveraging off our presence and expertise in both our Hong Kong and Singapore offices. We look forwarding to assisting CDB on its future deals."

Herbert Smith Freehills has previously acted for China Development Bank of a number of its deals including its financing of approximately US$1.34 billion for an Australian iron ore mine.