The one notable deal from China in 2006 was issued in the international market. Macquarie Wanda Real Estate Fund - a joint venture between Australia's Macquarie Group and Chinese property developer Dalian Wanda - in October sold the first offshore CMBS involving nine properties located in the People's Republic of China.

The $145 million offering - arranged by Citigroup and Macquarie Bank and called Dynasty Assets - was challenging. Final pricing of 80 basis points over Libor for the 2.75-year single-A rated notes was outside the 60 point target the borrower set with initial guidance. Despite that, closing an offshore deal involving Chinese assets required overcoming numerous legal hurdles. For that, those involved deserve credit.

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