24 Mar 2015
The Link Management Limited, as Manager of The Link Real Estate Investment Trust (“The Link REIT”) (Hong Kong stock code: 823), is pleased to announce the successful acquisition of the EC Mall in Beijing for RMB 2,500 million. This transaction marks the company’s first Mainland China investment acquisition, signifying an important move in the company’s business diversification.
George Hongchoy, Chief Executive Officer of The Link Management Limited, said, “We are delighted to have secured our first investment project in Mainland China. The acquisition marks our first step towards entering into a new geographical market for business. The EC Mall contributes to our strategy of long-term investment in real estate assets that are sustainable, income producing properties. With this investment, we continue to build long-term income and capital growth, while maintaining a large and diversified portfolio of real estate in Hong Kong and other jurisdictions, including Mainland China.”
Describing the property’s potential, George said, “The acquisition is a solid long-term investment opportunity to grow our property portfolio and bring potential valuable returns to our Unitholders. The residents of Haidian District have the highest per capita disposable income in Beijing and consumer retail sales in the district rank the second highest amongst the Beijing districts. The mall is well positioned to capitalise on the growing spending power of local residents of Zhongguancun and the greater Haidian District. We believe that the company will benefit from the anticipated growth in both rental and value of the property.”
EC Mall is one of Beijing’s most reputable prime retail shopping centres. Located in China’s “Silicon Valley” of Zhongguancun in the Haidian District, the mall receives an annual footfall of over eight million visitors. It benefits from the close proximity to the nation’s top universities, science academies and research institutions as well as the convenient surrounding traffic network. With a total gross floor area of over 70,000 square metres, the mall comprises seven floors of retail space housing a dynamic mix of tenants including fast-fashion, food and beverage, lifestyle, health and beauty, education and sportswear. International brands such as Nike, innisfree, H&M, UNIQLO, SEPHORA and Zara offer visitors a unique shopping experience. EC Mall was opened in 2009. It currently enjoys an occupancy rate of approximately 99%.
EC Mall website: www.ecmall.com.cn