|Link Asset Management Limited today announced that pursuant to the terms of the Sale and Purchase Agreement, the acquisition of Corporate Avenue 1 & 2 (the “Property”) in Shanghai was completed, marking an addition to Link REIT’s portfolio of premium-grade investment assets in Mainland China’s first-tier cities.
George Hongchoy, Chief Executive Officer of Link Asset Management Limited said, “It is Link’s strategy to invest in commercial real estate for the long term. Our focus is on sustainable income-producing properties that demonstrate potential for both income and capital growth. In line with our prudent approach and given the recent market volatility, we shall closely monitor the pace and extent of our investments in both Hong Kong and Mainland China.”
Located strategically in Shanghai’s core CBD in Taipingqiao/Xintiandi area in Huangpu District, the Property is a recognised district landmark in Shanghai. It is in close proximity to Shanghai’s popular retail destination of Huaihai Middle Road. Convenient transport connectivity and a catchment area of affluent businesses and residential communities, combined with the strong market demand for premium Grade-A office space make this an attractive long-term investment. The forecasted supply of Grade-A office space in the core CBD is limited, thus adding value to the Property.
With a gross floor area (including the basement) of approximately 98,000 square metres, Corporate Avenue 1 is a 21-floor tower comprising 19 floors of office space, while Corporate Avenue 2 is a 10-floor tower comprising eight floors of office space. Two floors of retail space at the street and first floor levels connect the towers. There are also 226 parking spaces located at the two basement levels.
The occupancy rate of the Property since 2011 has remained above 94%. As of 30 June 2015, occupancy of the retail and office components of the Property was 100% and 98% respectively. The top 10 tenants comprise multinational companies operating in various industries.