HK-listed Link REIT buys Guangzhou mall for $501m
With a gross retail area of 90,113 sqm, it is considered the biggest mall in its district.
Hong Kong-listed Link Real Estate Investment Trust (Link REIT) is acquiring a 100% interest in Happy Valley Shopping Mall in Guangzhou, China and its related loans for a total of $500.84m (RMB3.2b), the company announced in a media release.
Located at eastern part of Zhujiang New Town in Tianhe District, the property is an 8-storey commercial development with 4-storey basement, providing a total gross retail area of about 90,113 sqm, and a car park with 800 parking spaces.
The company noted that it is the only sizable mall in the district, which is in proximity to the Huangpu Avenue, a key arterial road in Guangzhou, with two future metro stations on metro line 13 which is expected to be operational by 2022 or 2023.
Business of the Happy Valley Shopping Mall saw occupancy of around 70.3% as of 24 May. There will be large rental uplift potential from re-positioning the mall as an integrated leisure and shopping destination for affluent modern families through trade mix upgrade and customisation of service offerings, the company said.
Link will fund the investment with its internal resources and facilities with the intention to hedge the majority part of currency exchange volatility. The completion of the transaction is expected to be in June.