Hong Kong-listed retail trust Link REIT has acquired three warehouses in China for RMB947m (€134m).
The assets include two fully-leased facilities in Jiaxing and Changshu South and a facility in Changshu North expected to complete this month.
The three logistics assets cover a total gross floor area of 192,144sqm with total lettable area of 188,605sqm.
Upon completion of the acquisition, Fujian Dongbai, seller group of the portfolio, will remain as operations manager of these three assets.
George Hongchoy, Link REIT’s CEO, said: “This acquisition of a top-quality logistics portfolio allows us to gain a footprint in a highly sought-after logistics hub in Mainland China, and is immediately yield-accretive.”
He said the limited supply of modern warehouses at prime locations presented attractive upside potential with the continued rise of e-commerce and demand for modern logistics services.
“Together with the logistics assets we acquired last October in the Greater Bay Area, we are set to capture the robust growth momentum of this budding industry,” he said.
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