Hong Kong-listed Link REIT is raising HK$18.8bn (€2.2bn) to pay down debt and to fund its next phase of growth, which will include the formation of partnerships with global capital partners.
Link REIT will target opportunities in sectors ranging from retail to office and car parks in markets across Asia-Pacific.
“We aim to optimise our portfolio through diversification and to grow our assets under management together with capital partners,” George Hongchoy, Link’s CEO said at a press conference.
Link REIT will seek to partner “large global investors” who share the same investment horizon and return targets, he said.
Nicholas Allen, Link’s chairman said: “The proposed rights issue will strengthen Link REIT’s capital base and position us to capture accretive investment opportunities amid the real estate market’s repricing.”
Ronald Tham, Link’s chief corporate development officer, said Link would be looking for opportunities to invest in both listed and private real estate platforms.
Ng Kok Siong, Link’s chief financial officer, said 40-50% of net proceeds from the rights issue would be used to repay existing debt and for general working capital.
Ng, who is also an executive director, said the balance would be deployed to pursue future investment opportunities, with a focus on retail, car park, office and logistics sectors across Asia-Pacific.
Current aggressive interest cycles presented potential for good deals, he said, as some groups would be looking to divest assets.
He gave the example of Link’s December purchase of two suburban shopping centres in Singapore from Mercatus Co-operative for S$2.16bn (€1.5bn), paving Link’s entry into the southeast Asian city state.
Ng said repricing of assets was also under way in Australia, another market where Link was invested and was looking for further opportunities.
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