Link Reit buys three prime shopping centres in Sydney as Australia relaxes Covid-19 curbs
- Link Reit is buying 50 per cent of three iconic retail properties at the heart of Sydney central business district (CBD) for A$38.2 million
- Strategic partnership with a leading retail asset manager in Australia
![Exterior of the Queen Victoria Building (QVB) in Sydney. Photo: Handout](https://cdn.i-scmp.com/sites/default/files/styles/1020x680/public/d8/images/methode/2021/11/10/504f1536-41d6-11ec-b9bb-5bc84a21bb41_image_hires_113214.jpg?itok=r2Pd-24t&v=1636515146)
Link Reit has invested in three retail properties in Sydney, in a diversification move after Asia’s largest real investment trust reported its second-worst annual revenue growth.
The Hong Kong-based company paid A$538.2 million (US$398 million) for 50 per cent of a trio of assets comprising the Queen Victoria Building (QVB), the Strand Arcade and The Galeries in Sydney, according to a statement released late on Sunday.
“The acquisition of this prime retail portfolio is part of our Vision 2025 growth strategy to diversify and improve our portfolio mix,” Link’s chairman Nicholas Allen said. “We are excited to have captured an opportune moment to invest in these iconic Australian retail assets.”
The diversification followed a 0.2 per cent rise in Link’s fiscal 2021 revenue for the 12 months ended in March, which grew to HK$10.74 billion (US$1.38 billion), the smallest annual increase since 2019, according to Refinitiv’s data. Australia offers an attractive investment opportunity for Link, as the government gradually relaxes Covid-19 travel restrictions and opens the nation’s borders to international travellers after inoculating 80 per cent of the adult population, a policy which may spur “sales and leasing activity in the hospitality, large-format retail and defensive industrial segments,” according to Colliers.
![A view of the interior of the Strand Arcade in Sydney on Monday, October 11, 2021. Photo: Bloomberg. A view of the interior of the Strand Arcade in Sydney on Monday, October 11, 2021. Photo: Bloomberg.](https://img.i-scmp.com/cdn-cgi/image/fit=contain,width=1024,format=auto/sites/default/files/d8/images/methode/2021/11/10/2fbc94aa-404c-11ec-b9bb-5bc84a21bb41_972x_113214.jpg)
“The rare portfolio, sitting in the heart of Sydney CBD, was offered to the market for the first time,” said Link’s chief executive George Hongchoy. “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. Coupled with the strategic partnership with a leading retail asset manager in Australia, we believe both parties will jointly enhance the portfolio to ensure these landmark assets will deliver the best retail experience to all shoppers and unlock their long-term growth potential.”
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