Hong Kong-listed Link REIT is acquiring the remaining 50% interest it does not already own in the Qibao Vanke Plaza in Shanghai for RMB2.38bn (€307.5m).
Link acquired an initial 50% interest in the mall in April 2021.
Link’s chief executive officer, George Hongchoy said: “We are pleased that our joint-venture partner Vanke agreed to let us take management control of this sizable and high-quality property which is yield-accretive and has long-term growth potential.
“We are not only committed to providing mall consumers with a pleasant experience and vibrant community life but will also continue to explore different asset strategy options to enhance the value of the property, including introducing like-minded strategic partners.”
Hongchoy said that Link intended to hold the property as a long-term investment. However, he added, if any equity of the property was transferred to a third party as a result of Link’s introduction of strategic partners within the 12 months immediately following Link’s takeover, Link would share with Vanke part of the gains from the relevant transaction according to a pre-set formula.
As of 31 January 2024, the appraised property value of the shopping mall was RMB7.1bn, said Link REIT.
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