China real estate: Link Reit to fully acquire Shanghai mall from Vanke for US$331 million
- Link Reit, which bought a 50 per cent interest in Qibao Vanke Plaza in April 2021, plans to acquire the remaining stake from the indebted Chinese developer
- The five-storey shopping centre in Minhang district has a gross retail area of 148,853 square metres and 1,477 car parking spaces
Link Real Estate Investment Trust (Link Reit), Asia’s largest real estate investment trust, is strengthening its operations in mainland China by taking complete control of a retail property in Shanghai from its joint-venture partner China Vanke.
Link Reit has agreed to acquire the 50 per cent stake in Qibao Vanke Plaza it does not already own from the indebted developer for 2.38 billion yuan (US$331 million), according to a statement from the Hong Kong-listed company on Friday.
The company had acquired a 50 per cent interest in Qibao Vanke Plaza in April 2021 and will become the sole owner following the completion of the transaction.
“Going forward, we are not only committed to providing mall consumers with a pleasant experience and vibrant community life, but will also continue to explore different asset strategy options to enhance the value of the property,” George Hongchoy, CEO of Link Reit, said in the statement.
The acquisition comes amid a gradual improvement in retail sales in Shanghai and the addition of new commercial property. Eight new projects came online in China’s biggest metropolis in the fourth quarter, adding 587,000 square metres (6.3 million sq ft) of prime retail space, according to property consultants.
Link Reit said it intends to hold the asset as a long-term investment. The company has 12 assets on the mainland, including five malls in Beijing, Shenzhen and Guangzhou.
