Link Reit

With the acquisition, Link Reit will be among the top 10 retail asset owners in Singapore. Read more at straitstimes.com.

It will continue to retain ownership of assets that are substantially used by National Trades Union Congress, NTUC Enterprise and its portfolio of social enterprises. Nearly three-quarters of its portfolio is in Hong Kong, but it has expanded into mainland China, Australia and Britain. The Reit manager said the acquisition will be fully funded through its cash resources and debt facilities. With AMK Hub, Link Reit will become the sixth-largest shopping centre operator by footprint once the deal is complete. The transaction is expected to complete on March 31. Mercatus said its divestment is a result of a strategic review, and is in line with its strategy to refocus on certain types of core assets.

Link REIT is buying the Jurong Point and Thomson Plaza malls in Singapore from Mercatus Co-operative for S$2.16 billion.

As part of the transaction, Link REIT has agreed to take over asset and property manager duties for AMK Hub at “market fee levels”. “There is no certainty or assurance that there will be a transaction pertaining to the remaining assets.” The company also owns the 31-storey One Marina Boulevard skyscraper in the downtown core, which serves as headquarters for Mercatus and NTUC Enterprise. To fund the acquisition, the trust is tapping both internal cash resources and debt facilities, The two malls have weighted average lease expiry terms of around two years, with lease agreements accounting for 85 percent of their gross rent set to expire by 2025. “This is firmly aligned with our growth strategy to diversify and improve our portfolio mix across geographies and follows recent investments by Link in the region.” That price represents an 11 percent discount from the S$194 million latest appraised value of the asset. “Properties such as these, sizable suburban retail assets with high occupancy rates and stable rents, are traditionally tightly held and do not often come to market,” Link REIT chief executive officer George Hongchoy said. Link REIT is making its debut in Singapore as rising interest rates have slowed deals around the region, with analysts pointing to the mega-deal as a sign of investor confidence in the local market and the value of the city-state’s reputation as a safe haven. “Link REIT is taking a long term view in Singapore in line with its long term global expansion, considering the city’s safe haven status,” said Ting Lim, head of capital markets for JLL in Singapore. The property forms part of the Boon Lay Integrated Public Transport Hub, which also includes the Boon Lay Bus Interchange and Boon Lay MRT station, which is proposed to become an interchange with the Jurong Region Line when it opens in 2027. “The acquisition of Jurong Point and Thomson Plaza presents an exciting opportunity for Link to build its presence in Singapore, a robust economy with domestic price stability that is conducive to sustained growth,” Nicholas Allen, the trust’s chairman, said in the statement.

SINGAPORE: Hong Kong-listed Link Real Estate Investment Trust (REIT) is buying a portfolio of Singapore shopping malls for S$2.16 billion (US$1.6 billion) ...

Nearly three-quarters of its portfolio is in Hong Kong, but it has expanded into mainland China, Australia and Britain. The retail space has almost 60 tenants, such as Huggs Collective and Korean restaurant Wonderful Bapsang. Advertisement

Link REIT is acquiring two suburban retail assets in Singapore, Jurong Point and Swing By @ Thomson Plaza. The assets are being acquired from Mercatus ...

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Link Real Estate Investment Trust (REIT) is buying a portfolio of Singapore shopping malls for S$2.16 billion ($1.6 billion) from Mercatus Co-operative in ...

Nearly three quarters of its portfolio is in Hong Kong, but it has expanded into mainland China, Australia and Britain. On completion of the deal, Link REIT will be among the top 10 retail asset owners in Singapore, it said, adding that the transaction is expected to complete on March 31. The deal is for the acquisition of suburban retail assets Jurong Point and Swing By @ Thomson Plaza, along with a 10-year asset and property management service agreement for a third suburban mall, AMK Hub, which will remain under the ownership of Mercatus, Link REIT said in a stock exchange filing.

Hong Kong's Link REIT is venturing into Singapore with a S$2.16 billion ($1.6 billion) acquisition of two shopping malls in the country's suburban area from ...

Listed in Hong Kong in 2005, Link REIT owns a HK$234 billion ($30 billion) real estate portfolio that includes shopping malls, car parks and offices. Located in Jurong West, one of the most densely populated residential areas in Singapore, Jurong Point has a 720,000 square feet of net lettable area, according to the statement. With their close proximity to residential areas and retail offerings that include essential goods, suburban malls have been attracting more foot traffic than malls that cater to tourists in prime shopping districts. Link REIT announced on Wednesday that it will purchase Jurong Point and Swing By @ Thomson Plaza from the property arm of NTUC Enterprise Co-operative in a transaction that’s expected to be completed in March 2023. Average gross rents of suburban malls recorded a 0.7% increase year-on-year in the third quarter, compared to a 0.3% drop in the Orchard Road shopping strip during the same period, according to Knight Frank. “Properties such as these, sizable suburban retail assets with high occupancy rates and stable rents, are traditionally tightly held and do not often come to market,” George Hongchoy, CEO of Link, said in a statement.