February 25, 2021- Link Asset Management Limited (Link), the manager of Link Real Estate Investment Trust (Link REIT, Hong Kong stock code: 823) announced today (Wednesday) that it has agreed to acquire 50% interest in Shanghai Qibao Vanke Plaza in Shanghai for RMB2,772 million. It is based on the agreed property value of RMB6,400 million, which represents a discount of 2.7% to the appraised property value of RMB6,580 million as at 31 December 2020.
Link’s Chief Executive Officer, George Hongchoy, said:
“The acquisition is in line with Link’s investment strategy to invest in yield-accretive and income-producing real estate which has potential for long-term growth. Upon completion, the property will be immediately yielding, with strong growth potential.
“Shanghai has the fastest retail recovery from COVID-19 among the four Tier 1 Cities in Mainland China. [Note 1] Shanghai Qibao Vanke Plaza is a regional destination primely located in a mature and densely populated suburban residential area with direct connectivity to Qibao metro station. With further improvement of surrounding infrastructure, including the Jiamin Line, Airport Connection Line and Qibao Eco-Business Park, the catchment population is expected to expand even more.”
The construction of Shanghai Qibao Vanke Plaza, which is located at Qibao Town, Minhang District, Shanghai, was completed in 2016. The property is a 5-storey commercial development with 3-storey basement, providing total gross retail area of approximately 149,000 square metres, and a car park with 1,471 parking spaces.