27 Oct 2015

Link REIT Disposes of Five Properties Offers Exceed Appraised Value by over 30%

Link Asset Management Limited (“Link Asset Management”), as the manager of Link Real Estate Investment Trust (“Link REIT”; Hong Kong stock code: 823), today announced that on 27 October 2015, Link REIT (through the vendor) entered into agreement with five different buyers in respect of the disposal of its five properties via open invitation of interest with a view to tender, namely:
(i) Fung Wah Estate Retail and Car Park,
(ii) Ka Fuk Shopping Centre,
(iii) Kwong Tin Shopping Centre,
(iv) Siu On Court Retail and Car Park, and
(v) Tin Wan Shopping Centre.
The aggregate consideration for those five properties offered by the winning bidders amounted to HK$1,716 million, which exceeds their total appraised value as at 30 September 2015 by over 30%. The selling prices for each of the five properties represent a premium ranging from 14% to 52% on the relevant appraised values.
“We are pleased with the market’s response, which has achieved prices well above valuation, and registered a record number of over 30 offers from investors,” said George Hongchoy, Chief Executive Officer of Link Asset Management. “Disposal is part of our capital recycling strategy to create value for unitholders. As a responsible manager, we will continue to review the portfolio for opportunities to streamline and improve operating efficiency.”
The tender attracted interest from over 200 potential buyers, including property fund, education institution, charity organisation and car park operator, and each of the five properties received a number of offers. Savills (Hong Kong) Limited and DTZ were the sole agents for the disposal by way of open invitation of interest.
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 Link REIT. Completion of the disposals shall take place on 31 December 2015.
Link Asset Management 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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