Link Real Estate Investment Trust (Link REIT) has agreed to sell seven Hong Kong properties, mainly shopping centres, by tender to five different buyers.
Its management company, Link Asset Management, says the aggregate consideration for the seven properties amounts to HK$12.962 billion (US$1.67 million), which exceeds their total appraised value by 33 per cent.
The properties are: Hing Man Commercial Centre, Kam Ying Court Shopping Centre, Po Tin Shopping Centre (right picture), retail and parking within Mei Chung Court, retail/parking within Po Nga Court, retail/parking within Yan Shing Court, and Tin Ma Court Commercial Centre.
Despite market outlook concerns, there was a strong response to the tender, says Link Asset Management CEO George Hongchoy. Interested parties included listed companies and private investors, both local and from mainland China. Of the five buyers, four are first-time successful bidders.
Disposal is part of Link REIT’s capital-recycling strategy. Proceeds from the sales will be used for general working capital purposes, including debt repayment and unit buy-back. The deals should be completed by the end of next month.