Hong Kong’s Link Reit Acquires 2 Singapore Malls

Feb 2023

Asia’s largest real estate investment trust, Link Reit has made a foray into Singapore through its planned acquisition of two Singapore retail developments, Jurong Point and Swing By, from Mercatus Co-operative. The deal, worth USD 1.6 billion, is expected to be completed on March 31 and will establish Link as one of the top 10 retail asset owners in Singapore, as well as the sixth-largest shopping center operator in terms of footprint. As part of the agreement, 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.

According to Link Reit, the acquisition of Jurong Point and Swing By will enable it to develop a presence in Singapore, a strong economy with domestic price stability that is conducive to sustained growth. In addition, the properties themselves are highly desirable, sizable suburban retail assets with high occupancy rates and stable rents, which are usually tightly held and rarely come to market. Once the acquisition is complete, the two properties will have generated an annualized net property income of USD 79 million as of October 2022.

Link Reit was listed on the Hong Kong Stock Exchange in 2005, and almost 75% of its portfolio value is in the territory. It also has a presence in Mainland China, Australia, and the UK. According to Nicholas Allen, chairman of Link, the acquisition of Jurong Point and Swing By is an opportunity for the company to expand its presence in Singapore and further its growth strategy of diversification and portfolio improvement across different geographies.

(Source: Inside Retail Asia)

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