Link Asset Management Limited, the manager of Link Real Estate Investment Trust (“Link REIT”, Hong Kong stock code: 823), announced today its acquisition of Beijing Jingtong Roosevelt Plaza (the “Property”), marking the company’s second acquisition in Beijing and fourth acquisition in Tier-1 cities in mainland China.
Link REIT will acquire 100% stake in the Property at an agreed property value of RMB2,560 million and intends to hold it as a long-term investment. The Property is a recently built, seven-storey retail centre in Beijing’s Tongzhou District. The district is considered the eastern gateway to the capital and has been positioned by the Government as Beijing’s sub-centre, home to many public facilities to be relocated from the city centre. Situated amidst high-density residential communities, Beijing Jingtong Roosevelt Plaza is well-placed to serve the district’s growing residential and working population.
George Hongchoy, Chief Executive Officer of Link Asset Management Limited, said, “This metro-linked retail property is located in the rapidly developing district of Tongzhou, which has recorded robust growth in residents’ disposable income in recent years. The upcoming new residential developments around the property, coupled with the Government’s plan to relocate many municipal departments to the district, bode well for the demand for food and beverage, lifestyle, kids/education and entertainment services. Building on our success with EC Mall, our first asset in the capital, we intend to strengthen the mall’s footfall and rental growth by enhancing product and service offerings to serve the district’s expanding customer base.”
With a total retail GFA of about 67,546 sqm, the Property comprises a retail podium from Basement 1 to Level 6 and 576 car parking spaces. As at 31 October 2018, its retail occupancy stood at 96.2% with 268 retail tenancies, and its monthly gross income was RMB 10.3 million. It boasts a dynamic mix of retailers including food and beverage, fashion/accessories, kids/education and lifestyle, health and beauty, and a cinema. Upon completion of the transaction, the Property will contribute immediately to Link REIT’s earnings. After taking into account this new acquisition, mainland Chinese assets represent about 9.5% of Link’s total asset value.
Strategically-located along Beiyuan South Road, the main artery of Tongzhou District, Beijing Jingtong Roosevelt Plaza is adjacent to Jiukeshu metro station of Batong line and Jincheng Center, a 23-storey office building. Tourism-related demand will also be spurred by the new metro extension currently under construction to Universal Studio Beijing which is expected to open in 2020.