Link Asset Management, the manager of Link Real Estate Investment Trust (Link REIT), has agreed to sell five Hong Kong shopping centre properties.
The five are:
- Fung Wah Estate Retail and Car Park.
- Ka Fuk Shopping Centre.
- Kwong Tin Shopping Centre.
- Siu On Court Retail and Car Park.
- Tin Wan Shopping Centre.
The company says the aggregate price for the five offered by the winning bidders in a tender process amounted to HK$1.716 billion, which exceeds their total appraised value by more than 30 per cent. The selling prices for each of the five properties represent a premium ranging from 14 per cent to 52 per cent on the relevant appraised values.
“We are pleased with the market’s response, which has achieved prices well above valuation, and registered a record number of over 30 offers from investors,” said George Hongchoy, Link Asset Management CEO.
“Disposal is part of our capital recycling strategy to create value for unitholders. As a responsible manager, we will continue to review the portfolio for opportunities to streamline and improve operating efficiency.”
The tender attracted interest from over 200 potential buyers, including property funds, an education institution, charity organisation and a car park operator, and each of the five properties received a number of offers. Savills (Hong Kong) Limited and DTZ were the sole agents for the disposal by way of open invitation of interest.
Proceeds from the disposal will be used to fund potential investment and unit buy-back opportunities as well as for general working capital purposes of Link REIT. Settlement will take place on December 31.