Hong Kong-listed and Asia’s largest commercial REIT Link Real Estate Investment Trust (Link REIT) (823: Hong Kong) has agreed to acquire a commercial property in Wong Tai Sin for HKD1.38 billion (USD178 million), a report in the South China Morning Post said on 19 August.
The property would be Link REIT’s third acquisition since it listed in 2005. The development, known as the Lions Rise Mall, was completed in 2012 and was built as the commercial component of Lions Rise, a housing estate consisting of five residential blocks on top of the podium that has been developed by Kerry Properties.
As of the end of July, the property is reported to be 84% occupied with 36 tenancies and various licences delivering a monthly rental income of about HKD2.8 million.
The Link Reit is said to have paid a deposit of HKD138 million upon entering into the sale and purchase agreement on 18 August, and will pay the balance of HKD1.242 billion on completion of the deal this coming September.
Units of Link REIT closed the trading day at HKD46.55 on the Hong Kong Stock Exchange.