10 Feb 2023

• As part of the transaction, Link will enter into a 10-year asset and property management service agreement for a third suburban retail mall, AMK Hub, which will remain under Mercatus’ ownership
• In addition to additional income, the acquisition provides Link with a strong foothold in Singapore and the opportunity to build in-market capability

Link Asset Management Limited (Link), the Manager of Link Real Estate Investment Trust (Link REIT; Hong Kong stock code: 823), announced today (Friday) that it proposes to raise approximately HK$18.8 billion (before expenses and assuming no conversion of Outstanding Convertible Bonds) by way of a Rights Issue to strengthen Link REIT’s capital base to position it for the next phase of growth.

The Rights Issue is proposed to be conducted on the basis of one Rights Unit for every five existing Units held at a Subscription Price of HK$44.2 per Rights Unit. This represents an approximately 26.0% discount to the theoretical ex-rights price of HK$59.7 per Unit and 29.6% discount to the closing price of HK$62.8 per Unit on the Last Trading Day (9 February 2023).  

The Rights Issue is fully underwritten by the Lead Underwriters, namely HSBC, DBS and JP Morgan, subject to the terms and conditions of the Underwriting Agreement. HSBC is the Sole Global Coordinator of the Rights Issue.

Nicholas Allen, Link’s Chairman, said:

“The proposed Rights Issue will strengthen Link REIT’s capital base and position us to capture accretive investment opportunities amid real estate markets’ repricing. It will further solidify our position as a leading Asia Pacific real estate investor and manager.”

George Hongchoy, Link’s Chief Executive Officer, said:

“Link REIT is committed to growth under our Link 3.0 strategy, where we aim to optimise our portfolio through diversification and to grow our assets under management together with capital partners.”

Use of proceeds 

It is expected that the net proceeds from the Rights Issue will be used for repaying existing debts, pursuing investment opportunities and general working capital:

(i) Approximately 40% to 50% of the net proceeds from the Rights Issue will be used to repay existing debt and for general working capital

(ii) The balance will be deployed for pursuing future investment opportunities, with a focus on retail, car park, office and logistics sectors across Asia Pacific

(iii) As at the date of this announcement, none of the net proceeds has been earmarked for any specific investment opportunities

Expected timetable

The Units are expected to be dealt in on an ex-rights basis from Friday, 24 February 2023.

It is expected that the Offering Documents will be sent to the Qualifying Unitholders on Tuesday, 7 March 2023.

Upon issuance of the Offering Documents, Qualifying Unitholders in the register of Unitholders of Link REIT at 5:00pm on Monday, 6 March 2023 can begin to make acceptance of Rights Units and application for excess Rights Units until 4:00pm on Tuesday, 21 March 2023.

Dealings in Nil Paid Rights are expected to take place from Thursday, 9 March 2023 to Thursday, 16 March 2023, both dates inclusive.

Dealings in Rights Units in fully-paid form is expected to commence at 9:00 am on Thursday, 30 March 2023.

The expected timetable in respect of the proposed Rights Issue is set out below:

Notes:

1. All capitalised terms have the same respective meanings as those in the announcement published by Link Asset Management Limited in its capacity as manager of Link REIT dated 10 February 2023 (the “Announcement”).
2. All times and dates refer to Hong Kong local times and dates. Dates or deadlines specified are indicative only and may be extended or varied by the Manager. Any changes to the expected timetable will be published or notified to the Unitholders and the Stock Exchange as and when appropriate.

The enclosed infographic explains the proposed Rights Issue at a glance.

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About Link

Link Real Estate Investment Trust (Hong Kong stock code: 823), is the largest REIT in Asia by market capitalisation^#. It is managed by Link Asset Management Limited, a leading real estate investor and asset manager in the world. Since its listing in 2005 as the first REIT in Hong Kong, Link REIT has been 100% held by public and institutional investors. It is a constituent of the Hong Kong securities market benchmark Hang Seng Index, as well as a component of the Dow Jones Sustainability Asia Pacific Index, the FTSE4Good Index Series and the Hang Seng Corporate Sustainability Index. From its home in Hong Kong, Link Asset Management Limited owns and manages a diversified portfolio including retail facilities, car parks, offices and logistics assets spanning from China’s Beijing, Greater Bay Area (Hong Kong, Guangzhou and Shenzhen), and Yangtze River Delta centred around Shanghai, to the UK’s London, Australia’s Sydney and Melbourne and Singapore*. Link Asset Management Limited seeks to extend its portfolio growth trajectory and grasp expansion opportunities in different markets in pursuit of sustainable growth.

For details, please visit https://www.linkreit.com.

#Source: Factset
*Proposed acquisition announced on 28 December 2022; Pending completion

Disclaimer

THIS NEWS RELEASE IS NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN, INTO OR FROM THE UNITED STATES OR ANY OTHER JURISDICTIONS WHERE SUCH RELEASE, PUBLICATION OR DISTRIBUTION IS NOT PERMITTED BY APPLICABLE LAWS OR WOULD RESULT IN ANY REQUIREMENT TO COMPLY WITH ANY GOVERNMENTAL OR OTHER CONSENT OR ANY REGISTRATION, FILING OR OTHER FORMALITY WHICH LINK ASSET MANAGEMENT LIMITED (THE "MANAGER") IN ITS CAPACITY AS MANAGER OF LINK REAL ESTATE INVESTMENT TRUST ("LINK REIT") REGARDS AS INEXPEDIENT (COLLECTIVELY, THE “RESTRICTED JURISDICTIONS”).

This news release is issued by the directors of the Manager, who accept full responsibility for the content hereof. Hong Kong Exchanges and Clearing Limited, The Stock Exchange of Hong Kong Limited and the Securities and Futures Commission of Hong Kong take no responsibility for the content of this news release.

This news release is for information purposes only. It does not, and is not intended to, constitute an offer, invitation or solicitation to acquire, purchase, dispose of, subscribe for or underwrite any securities in Link REIT or to acquire any interest in or participate in any interest in Link REIT in any jurisdiction. In particular, it does not constitute, nor does it contain any information or material which may result in it: (i) being deemed to be a prospectus under the Companies (Winding Up and Miscellaneous Provisions) Ordinance (Chapter 32 of the Laws of Hong Kong) or an advertisement or extract from or abridged version of a prospectus within the meaning of the Companies (Winding Up and Miscellaneous Provisions) Ordinance; (ii) being regarded as or deemed to be an advertisement, invitation or document (the terms "advertisement", "invitation" and "document" are as defined under section 102 of the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong)) which is or contains any offer or invitation to the public of Hong Kong to enter into or offer to enter into an agreement to acquire, purchase, dispose of, subscribe for or underwrite any securities in Link REIT or to acquire any interest in or participate in any interest in or offer to acquire any interest in or participate in any interest in Link REIT; or (iii) otherwise being regarded as or deemed to have effected an offer or invitation to the public of Hong Kong in respect of the securities in or interests in Link REIT without compliance with the laws of Hong Kong or being able to invoke any exemption available under the laws of Hong Kong. Neither this news release nor anything in this news release shall form the basis for any contract or commitment whatsoever or any decision to acquire, purchase, dispose of, subscribe for or underwrite such securities of Link REIT.

The securities referred to in this news release have not been, and will not be, registered under the U.S. Securities Act of 1933 (as amended) (the “U.S. Securities Act”) or with any securities regulatory authority of or under any applicable securities laws of any state or jurisdiction in the United States or any other Restricted Jurisdiction and may not be offered, sold, acquired, taken up, exercised, resold, renounced, transferred or delivered, directly or indirectly, within such jurisdictions except in reliance on an exemption from, or in a transaction not subject to, registration under the U.S. Securities Act, or in compliance with any applicable securities laws. No public offering of the securities referred to in this news release is being, has been or will be made in the United States or any other Restricted Jurisdiction.

You should not place undue reliance on any forward-looking statements contained in this news release, which speak only as at the date of this news release. By their nature, forward-looking statements involve a number of risks, uncertainties and assumptions that could cause actual results or events to differ materially from those expressed or implied by the forward-looking statements. Expectations reflected in any such forward-looking statements are subject to change and neither the Manager nor its directors undertake any obligation to update or revise any forward-looking statements in this news release.

This news release does not constitute any recommendation regarding the securities in Link REIT and cannot be relied on for any investment contract, commitment or decision. The contents of this news release should not be construed as legal, business or tax advice. Any decision to purchase or subscribe for the securities in Link REIT referred to in this news release should be made solely on the basis of the information contained in the offering circular(s) to be issued by the Manager in the capacity as the manager of Link REIT in connection with the rights issue referred to in this news release (the “Rights Issue”) and not on the basis of this news release. You should read the offering circular(s) for detailed information about the Rights Issue before deciding whether or not to invest.  No acceptance of rights units, transfer of nil paid rights or application for excess rights units in respect of the Rights Issue mentioned in this news release should be made by any person nor would such acceptance or transfer be valid or application be accepted without the completion of a formal application form or other application procedure that is to be issued with or in respect of the offering circular(s). If you are in any doubt about any matters in this news release, you should obtain your own professional advice.