Link REIT buys Singapore shopping malls for $1.6 bln

Link Real Estate Investment Trust

28/12/2022 11:37

SINGAPORE, Dec 28 (Reuters) - Link Real Estate
Investment Trust  0823.HK  (REIT) is buying a portfolio of
Singapore shopping malls for S$2.16 billion ($1.6 billion) from
Mercatus Co-operative in its first foray into the city state, it
said on Wednesday.
    The deal is for the acquisition of suburban retail assets
Jurong Point and Swing By @ Thomson Plaza, along with a 10-year
asset and property management service agreement for a third
suburban mall, AMK Hub, which will remain under the ownership of
Mercatus, Link REIT said in a stock exchange filing.
    "This transaction allows us to build a dedicated team in
Singapore and provides a base for Link to expand further into
other asset classes and strategies in Asia Pacific," Link CEO
George Hongchoy said in a statement.
    Link said it will fully fund the purchase through cash and
debt, adding that it is in active discussions with investors and
open to bringing in capital partners.
    The announcement by Asia's biggest REIT confirms a Reuters
report in November that cited sources saying Link REIT was the
frontrunner to buy the assets from Mercatus, a unit of Singapore
shopping mall owner NTUC Enterprise Co-operative, in what would
be Southeast Asia's biggest real estate transaction of 2022.
    The assets, described by analysts as a prized retail
portfolio, were first offered about seven months ago. 
    On completion of the deal, Link REIT will be among the top
10 retail asset owners in Singapore, it said, adding that the
transaction is expected to complete on March 31.
    DBS bank was Link REIT's financial adviser on the deal.
    Link REIT, which has a market value of $15.3 billion, has
been on the prowl for assets in Singapore and other countries to
diversify its portfolio.
    The Hong Kong-listed REIT owns and manages assets including
retail properties, car parks and offices. Nearly three quarters
of its portfolio is in Hong Kong, but it has expanded into
mainland China, Australia and Britain.
($1 = 1.3479 Singapore dollars)
 (Reporting by Yantoultra Ngui
Editing by David Goodman)
 ((Yantoultra.Ngui@thomsonreuters.com;))