29 Sep 2014

Link REIT Disposes Five Properties, with Offers Exceeding Appraised Value by 29%

Following the closure of a private tender, The Link Management Limited, as the manager of The Link Real Estate Investment Trust (“The Link REIT”; Hong Kong stock code: 823), today announced that on 29 September 2014, The Link REIT (through the vendor) entered into agreement in respect of the disposal of
(i) the Retail and Car Park facilities within Choi Fai Estate,
(ii) the Retail and Car Park facilities within Choi Ha Estate,
(iii) the Siu Lun Shopping Centre,
(iv) the Tin Ping Shopping Centre, and
(v) the Tsui Lam Shopping Centre.
Completion of the disposals shall take place on 1 December 2014.
The aggregate consideration for those five properties offered by the winning bidders amounted to HK$1,716 million and is about 29% above their total appraised value as at 31 March 2014, with one property sold at a price representing an 80% premium on the appraised value.
The private tender attracted interest from a large number of investors, including local listed companies and real estate funds, and each of the five properties received a number of offers.  “Considering the number and size of the properties involved, the overall market response was satisfactory,” said George Hongchoy, Chief Executive Officer of The Link Management Limited.  “As a responsible manager, The Link REIT sees disposal as part of its capital recycling strategy to create more value for its unitholders, and will continue to review its portfolio for opportunities to further streamline the portfolio and improve operational efficiency.” 

Proceeds from the disposal will be used to fund potential investment and unit buy-back opportunities as well as for general working capital purposes of The Link REIT.
The Link Management Limited will communicate with tenants, nearby residents and other stakeholders to keep them informed on matters relating to the transfer of ownership of the five properties.
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