Link splashes out on Sydney property

Link Real Estate Investment Trust (0823) says it acquired 50 percent stakes in three retail properties in Sydney for A$538.2 million (HK$3.1 billion) and its shares will resume trading today.

Link REIT purchased 50 percent interest in the Queen Victoria Building (including 669 car parking spaces under the QVB car park sublease) for A$277.1 million, in the Galeries for A$149.9 million, and in the Strand Arcade for A$111.2 million.

The transaction is expected to complete in the first half of 2022 and it will be funded from Link's own cash resources and debt facilities, the company said, adding that the acquisition will not have any material adverse impact on its financial position.

The acquisition contributes to the geographical diversification of its portfolio and is in line with Link's investment strategy to invest in yield-improving and income-producing real estate that has potential for long-term growth, Link said.

Upon completion, these properties will be held as a long-term investment and will expand its footprint in the Australian market and drive portfolio growth, it said in an exchange filing.

Based on the valuation report carried out by Link on October 25, the portfolio occupancy stood at 94.3 percent.

Chief executive George Hongchoy said that, given the high occupancy rate filled with leading Australian and international brands, the portfolio is well-positioned to capture the retail rebound with the improving consumption sentiment in the country.

Its shares were traded at HK$68.7 before halting at 1 pm last Friday.