Link Reit sells a dozen suburban Hong Kong malls to consortium led by Gaw Capital for US$1.53 billion
- The sale includes suburban shopping centres in Ap Lei Chau, Sha Tin and Tuen Mun
Link Reit, Asia’s largest real estate investment trust, said it would sell 12 shopping centres and malls in Hong Kong to a consortium led by Gaw Capital Partners for a combined HK$12 billion (US$1.53 billion).
Blackstone is part of the consortium, according to sources close to the deal who spoke on condition of anonymity.
Link said in a statement on Wednesday the sale would generate a net gain of HK$2.78 billion.
The shopping centres include the Lei Tung Estate mall in Ap Lei Chau, the Wang Fai Centre in Wang Tau Hom, Shan King Commercial Centre in Tuen Munand the Chun Shek Commercial Complex in Sha Tin, Link said.
“Despite recent market volatility, the property sale attracted overwhelming interest from leading international investors, including global and regional private equity funds, as well as local investors,” said George Hongchoy, chief executive officer of Link Asset Management, the manager of Link Reit.
“The competitive bids and final sale price, at better pricing than those achieved in the past disposals, underline global investor confidence in Hong Kong’s economy and its real estate sector.”