Hong Kong’s Link Real Estate Investment Trust (REIT) has entered into agreements with two local investors to sell its interests in Singapore retail asset Swing By @ Thomson Plaza, for S$250m (€168m).
The buyers are Jack Investment and Pangjwee Development. Jack Investment focuses on property, investment, and entertainment, while Pangjwee specialises in property development.
The Link Reit bought the asset for S$172.5m in 2022 in a joint transaction with a large regional mall, Jurong Point, for a total of S$1.6bn. It marked the entry of the Hong Kong asset owner into the tightly-held Singapore market.
The divestment forms part of Link’s ongoing portfolio optimisation strategy which aims to recycle assets, where appropriate, to create value for unitholders, said the trust.
Link’s executive director and chief investment officer, John Saunders, said: “While Link continues to focus on its core strength of retail malls in Asia Pacific and is keen to increase its exposure in Singapore, asset recycling remains an integral part of our active portfolio optimisation strategy. We regularly screen our assets to assess whether we believe we have maximised near term value with a decision to hold being effectively a decision to buy again at today’s price.”
“Swing By @ Thomson Plaza has performed well since acquisition, supported by targeted asset management initiatives undertaken by Link to improve the property’s market position and operating performance. The disposal allows Link to realise the value created through these initiatives and, where capital is deemed surplus to near term requirements, it allows us to return such capital to Unitholders,” Saunders added.
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