Link REIT to Sell 17 Hong Kong Properties for HK$23 Billion

By Joanne Chiu Features Dow Jones Newswires

Link Real Estate Investment Trust's (0823.HK) move to sell 17 properties in Hong Kong for 23.0 billion Hong Kong dollars ($2.95 billion) marks the biggest single disposal for the city's major retail landlord.

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Hong Kong-based Link REIT said late Tuesday that it has agreed to sell 17 shopping malls including parking spaces in Hong Kong's Kowloon and the New Territories to a consortium led by private equity investor Gaw Capital Partners.

The consideration, the highest offered for the properties in a competitive sale, represents around a 52% premium to the appraised value of the portfolio as of September 2017, and will bring a net disposal gain of around HK$7.4 billion for the retail landlord.

The latest sale will boost Link Reit's warchest for possible acquisitions as it seeks to diversify its asset base. The investment trust, whose initial assets were malls formerly owned by Hong Kong's housing authority, has been actively looking for new investment opportunities in Hong Kong and first-tier cities in mainland China.

After the latest sale, Link will have about 90% of its assets in Hong Kong and 10% in mainland China with total portfolio valued at around HK$175 billion, it said, adding that the sale is expected to be completed on 28 February 2018.

Write to Joanne Chiu at joanne.chiu@wsj.com

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(END) Dow Jones Newswires

November 28, 2017 19:32 ET (00:32 GMT)