New | Link Reit makes first acquisition in mainland China with 2.5b yuan deal for Beijing mall
Property investment trust takes advantage of industry slump, acquiring shopping centre in district with growing consumer spending power
The Link Real Estate Investment Trust has made its first foray into the Chinese retail market with the purchase of a Beijing shopping mall for 2.5 billion yuan (HK$3.1 billion).
The Link Management, which manages Asia's largest reit, on Tuesday announced it had bought the 800,000 sq ft EC Mall in the capital's Zhongguancun precinct - dubbed China's Silicon Valley. The deal also includes 251 parking spaces.
"The EC Mall contributes to our strategy of long-term investment in real estate assets that are sustainable, income-producing properties," said George Hongchoy, the chief executive of Link Management. "With this investment, we continue to build long-term income and capital growth, while maintaining a large and diversified portfolio of real estate in Hong Kong and other jurisdictions, including [the] mainland."
The price tag equates to 3,125 yuan per square foot, excluding the parking.
The downturn in mainland property presents a growth opportunity for Hong Kong's real estate investment trust sector, according to industry experts.
Analysts said logistics and retail properties were hot acquisition targets for property trusts.
The seven-storey EC Mall in Haidian district, which opened in 2009, has an occupancy rate of about 99 per cent. The mid-market shopping mall has tenants such as Nike, H&M, Uniqlo, Sephora and Zara.