Link REIT disposes 17 properties as part of strategic review

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Link REIT announced on 29 November that it has entered into agreements with a consortium led by Gaw Capital Partners to dispose of 17 properties through a competitive sale, for a total consideration of HKD23 billion.

This consideration is the highest offered for the properties and represents approximately a 52% premium to their collective appraised value as of 30 September 2017, representing a net disposal gain of about HKD7.4 billion, said the REIT.

Proceeds of the sale will be used for new investment opportunities in Hong Kong and first-tier cities in mainland China, in addition to general working capital purposes including debt repayment and, where appropriate, unit buy-backs, Link REIT added.

Completion of the disposals will take place on 28 February 2018.

Following the disposal of the 17 properties, Link REIT will have about 90% of its assets in Hong Kong and 10% in mainland China, and its portfolio value will amount to about HKD175 billion.

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Ridzwan Rahmat has been analysing Singapore-listed REITs and business trusts, since 2008. For disclosure purposes, Ridzwan is currently vested in Mapletree Greater China Commercial Trust, Mapletree Industrial REIT and Mapletree Logistics Trust.

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