Fashion
Link REIT has bought a shopping mall in Guangzhou for RMB4.065 billion (HK$4.57 billion; US$588.4 million).
The property, Metropolitan Plaza, is located at No. 8 Huangsha Road in Liwan District. It comprises retail space from basement level one to the third floor and two levels of parking.
Its gross lettable area is about 85,732 sqm.
Link REIT said in a stock exchange filing the acquisition was in line with its investment strategy to invest in income-producing real estate which has potential for long-term income and capital growth and to build a large and diversified portfolio of retail and/or commercial real estate in Hong Kong and in Tier-1 cities of the PRC.
“Guangzhou (being such a Tier-1 city) is mature and the disposable income of Guangzhou residents has been rising. The property will add to Link’s portfolio of investments in Tier-1 cities of the PRC along with its shopping mall in Beijing and an office/retail property in Shanghai.”
As at February 28, there were 219 tenancies at the property, occupying approximately 94.1 per cent of the total gross lettable area.
The monthly gross income of the property (excluding management fees) was approximately
RMB16.06 million. Food & beverage, fashion/accessories and kids/education account for, respectively, 33.4 per cent, 24.7 per cent and 13.7per cent of the total leased retail area.
Link REIT said Liwan District is one of the most popular mass market shopping and leisure destinations in the city.
It is also one of the most densely populated districts of Guangzhou, with a population of approximately 930,000 as of 2016. The property is strategically located on top of the intersection of Metro Lines 1 & 6 among the busiest Metro Lines in Guangzhou, with direct access to the station concourse.
The Guangzhou mall opened for business in 2012.
