Link Real Estate Investment Trust (REIT) has entered the UK market with the acquisition of a £380m (€417m) office asset, as part of its plan to diversify its portfolio beyond Hong Kong and mainland China.
Link Asset Management, the manager of the Hong Kong-listed REIT, said it has agreed to buy The Cabot building at 25 Cabot Square in Canary Wharf from HGR Liquidating Trust.
The amount being paid for the 17-storey 481,605sqft building represents a 0.4% discount on the 17 July valuation by Colliers International Hong Kong, the manager said.
The manager said the deal will be fully funded through internal resources as well as new facilities with the intention to fully hedge any foreign exchange fluctuations.
George Hongchoy, Link Asset Management’s CEO, said the acquisition is part of Link REIT’s vision 2025 growth strategy to diversify and improve portfolio mix, “enhancing our ability to deliver sustainable returns for unitholders”.
”A diversified portfolio can strengthen our portfolio resilience, allowing us to benefit from the varied economic cycles of different markets.
”Going beyond our home Hong Kong and Mainland China, we’re looking at opportunities in the UK, Singapore, Australia and Japan – transparent and liquid markets with sound legal frameworks and strong economic fundamentals.”
Patrizia acted as adviser and asset manager for the acquisition.
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