Link Reit sells four malls for HK$1.24b

PUBLISHED : Thursday, 22 May, 2014, 1:19am
UPDATED : Thursday, 22 May, 2014, 1:19am

The Link Real Estate Investment Trust has accepted buyers' offers totalling about HK$1.24 billion for four shopping centres.

Private tendering for the properties closed on May 15.

The disposals will be completed on July 31, Link Reit said in a stock exchange filing on Tuesday.

The complexes are Hing Tin Commercial Centre in Lam Tin, sold for HK$210 million; Kwai Hing Shopping Centre in Kwai Chung, sold for HK$438.84 million; the retail centre and car park at Tung Hei Court in Shau Kei Wan, sold for HK$72.9 million; and the Wah Kwai Shopping Centre in Pokfulam, sold for HK$518 million.

Link expects to record a gain of about HK$331.7 million. However, as the amounts involved are not large, the reit said it expects the financial impact to be limited.

It also does not expect the disposals to result in a material change in the reit's gearing, which stood at about 11.6 per cent at the end of September.

The Link said the disposals would streamline its operations and allow it to allocate resources more efficiently.

The buyers are Golden Grand Holdings, Yan Yan Motors, Global Universe Investments and Smart Essence Development. The Link described them as real estate investors.

Barclays said it viewed Link Reit's successful disposal of the four properties positively and expected Link's unit price to react positively to the disposal news.

Shares of the Link rose 2.5 per cent to close at HK$40.95 yesterday.

Link's strategy of selling mature assets in favour of new investments and unit buyback is the right approach, said Barclays in a research report yesterday.