The Link Real Estate Investment Trust has bought two commercial buildings in Shanghai, bordering the trendy Xintiandi shopping precinct.
Both buildings – Corporate Avenue 1 and 2 – combine retail and office space and together they cost 6.6 billion yuan (HK$8.35 billion). The vendor was Shui On Land.
Just four months ago The Link REIT signalled its serious intentions towards the mainland’s prime cities, investing 2.5 billion yuan on a shopping centre.
“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 in a statement.
“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, CEO.
The deal will be settled in late August.
Nearly three-quarters of The Link’s property assets are Hong Kong retail premises, another 17 per cent from car parking facilities in the territory. With this deal, its mainland assets now account for 7.5 per cent of its portfolio.