Asia’s largest real estate investment trust buys Metropolitan Plaza at 8 Huangsha Road RMB 4.1 billion in Guangzhou,China
Link Asset Management Limited, the manager of Link Real Estate Investment Trust , announced its acquisition of Metropolitan Plaza at 8 Huangsha Road in Guangzhou , marking the company’s third acquisition in Tier 1 cities in Mainland China.
Link REIT will acquire 100% stake in the Property at an agreed property value of RMB 4,065 million ($589 million) and intends to hold it as a long-term investment. The Property is one of the few recently-built, high-quality shopping centres in the Pearl River Delta area. Situated in Guangzhou’s Liwan District which boasts popular tourist attractions and approximately 3,000 high-end residential units nearby, the shopping mall enjoys good occupancy and footfall and is well-positioned to serve the area’s rising number of young professionals and middle-class families.
George Hongchoy, Chief Executive Officer of Link Asset Management Limited, said, “Guangzhou ranks among the top three cities in China in GDP and GDP per capita and yet has the lowest retail property supply among Tier 1 cities. The city offers great business potential and Metropolitan Plaza – 8 Huangsha Road is especially attractive as it is located at Liwan District where no new large-scale retail supply is foreseeable up to 2021. We plan to further strengthen its footfall and rental growth through a repositioned tenant mix and enhanced product and service offerings to serve the needs of Liwan’s growing middle class. Our investment focus in Mainland China will continue to be on retail and commercial projects that are in close proximity to metro lines in Tier 1 cities.“
The Property has a total gross floor area of approximately 88,726 square metres including shopping facilities from basement level one to the third floor. As at 28 February 2017, its retail occupancy stood at 94.1% with 219 tenancies including major international brands such as Decathlon, Nike, H&M, UNIQLO and Starbucks Coffee, offering visitors a unique shopping experience. Upon completion of the transaction, the Property will contribute immediately to Link REIT’s earnings.
Metropolitan Plaza – 8 Huangsha Road is strategically located atop the intersection of Guangzhou Metro Line 1 and Line 6, two of the busiest metro lines in Guangzhou, offering direct access to the station concourse of Huangsha Station through basement level one. Liwan District is one of the most popular mass market shopping and leisure destinations and one of the most densely-populated districts of Guangzhou, with a population of approximately 0.93 million as of 2016.
Source: Link REIT