NewHong Kong’s Link Reit buys Shanghai assets from Shui On Land for 6.6 billion yuan
Purchase of two office-retail buildings marks firm’s latest aggressive move in mainland after Beijing shopping centre deal
The Link Real Estate Investment Trust has bought two commercial buildings in Shanghai from Shui On Land for 6.6 billion yuan (HK$8.35 billion), in its latest aggressive move on the mainland.
The acquisition of the two office-retail buildings by the largest real estate investment trust in Asia came just four months after it bought a Beijing shopping centre for 2.5 billion yuan.
The two properties bought from Shui On are Corporate Avenue One and Two – next to Shanghai’s Xintiandi prime retail and entertainment area – which include grade A office and retail space.
“This marks the Link Reit’s first acquisition of a mixed-use property with office and retail components in mainland China,” said the Link Management, the reit’s manager, in an announcement.
“While retail remains our primary business focus, diversifying into other commercial-office properties enables the Link Reit to tap into the different growth cycles of alternative assets,” said George Hongchoy, the chief executive of Link Management.
The acquisition, which is planned for August 24 but may be extended to August 31, will be funded by the reit’s own cash resources and debt facilities.