Link REIT has reached a conditional agreement to acquire a RMB2.560 billion (US$368.8 million) shopping centre in Beijing.

The property, Beijing Jingtong Roosevelt Plaza, is a seven-storey mall housing 268 retail tenants, with 576 car parks on two additional underground levels.

Link said in a stock exchange filing that the property is located in Tongzhou, the eastern gateway to China’s capital, a rapidly developing district about 20km from central Beijing. It is in an established residential area with 30 per cent of the district’s population living within a 3km radius. The property has good connectivity, located on Beiyuan South Road, the district’s main artery, is a high-quality community mall with an occupancy rate of 96.2 per cent and a dynamic mix of retailers including food and beverage, fashion/accessories, kids/education and lifestyle, health and beauty, along with a cinema.

Leases for about 20 per cent of the four year old centre’s tenancies (by space) expire in 2020, providing Link with an opportunity to enhance rental reversion and performance of the property by upgrading the trade mix.

Link expects the net property income of the mall will increase, in turn bosting the capital value of the property, benefiting unitholders.