Link Reit makes its first foray outside Greater China with a US$469.5 million office property acquisition in Sydney
- The 10-storey office building, 100 Market Street, in Sydney’s central business district is being acquired from Blackstone Group
Link Reit, the biggest real estate investment trust in Asia, will enter Australia by acquiring a grade A office building in Sydney for A$683 million (US$469.5 million).
The 10-storey office building, 100 Market Street, in the central business district will be bought from US private equity firm Blackstone Group, Link Asset Management, which runs Link Reit, said in a statement on Thursday.
The acquisition is Link Reit’s first outside Greater China. The deal is expected to close by early next year.
“A more diversified portfolio with overseas properties providing new sources of income will help ease our reliance on Hong Kong properties to generate income progression, and contribute to a healthier growth trajectory,” said George Hongchoy, chief executive officer of Link Asset Management.
He said that the company was looking at further opportunities in Singapore, Japan and the UK, adding that Link has “no immediate plan to divest any asset in Hong Kong at the moment”.
He expects Hong Kong assets to account for 70 to 75 per cent of its total portfolio value, mainland China assets at about 20 per cent and overseas assets at around 10 per cent.