The special resolution relating to a proposal to expand the investment strategy of The Link Real Estate Investment Trust (“The Link REIT”; Hong Kong stock code: 823) was passed at the Extraordinary General Meeting today. This has enabled The Link REIT to undertake property development and related activities, subject to an investment cap of 10% of the portfolio’s gross asset value.
The Link REIT’s expanded investment strategy provides access to new investment opportunities and promotes long-term sustainable growth. With the passing of the special resolution, The Link REIT is able to acquire projects at an earlier stage with lower costs; design, build and hold assets that suit its specific needs, and re-develop old assets.
Retail and commercial properties remain its investment focus. The Link REIT will continue to adhere to investing in properties for long-term holding, and focusing on properties with sustainable income growth.
The ability to undertake property development and related activities will, when taken together with the existing permitted activities, give The Link REIT a full range of growth drivers encompassing:
(a) asset enhancement to properties with further income growth potential;
(b) asset management of the entire portfolio;
(c) acquisition of quality assets with both income and capital growth potential;
(d) capital recycling through disposal of non-core assets;
(e) property development to design, build and hold; and
(f) re-development of existing properties for long-term sustainable growth.
The ability to develop retail and commercial assets (together with asset acquisition and disposal) enables The Link REIT to accelerate the optimisation of the asset portfolio. These drivers complement each other by adding different capabilities at different points in time and together they enable The Link REIT to drive its growth at various stages of its development.