Link REIT, Asia’s largest real estate investment trust, has bought a Canary Wharf office block for £380m. That income increase came despite the city’s high streets welcoming fewer shoppers as months of anti-government protests were followed by the COVID-19 pandemic.In a year that Link REIT’s marked its first property acquisition outside of Greater China with an While the HKEX-listed REIT has 85 percent of its HK$193 billion in assets concentrated in its home city, with nearly all of that invested in retail properties, Link REIT’s management is predicting that income from its operations in Hong Kong will remain steady during 2020, despite challenging economic and social conditions..While luxury shopping malls such as Wharf Properties’ Times Square in Causeway Bay have seen foot traffic almost disappear as a result of the COVID-19 lockdown, Link REIT’s 126 local community shopping centres – mainly located in housing estates – have fared better.“With a portfolio that is dominated by neighbourhood and community retail, Link REIT is less exposed to the big falls in rental that Hong Kong is seeing in central locations – people are still buying groceries and basics – and Link REIT properties are key for this kind of shopping,” said James Hawkey, an independent retail consultant with over 20 years experience advising retail clients in Greater China.Hawkey added however that the trust’s portfolio is “not immune to the overall trends in the market”.In spite of the uptick in revenue, Link REIT recorded a full-year loss of HK$17.3 billion due to an 11.6 percent markdown in the valuation of its properties, triggered by a bleaker rental outlook in Hong Kong where 85 percent of the REIT’s properties are located.“The fall in the valuation of the portfolio is roughly in line with the fall in the overall market,” Hawkey said.With high street spending taking a nosedive as people make the switch to online shopping, average streetfront retail rents in Hong Kong fell 10.3 percent in the first three months of the year, after dropping 9.7 percent in the final quarter of 2019, according to the latest retail property report by CBRE.Occupancy across Link REIT’s Hong Kong retail portfolio remained stable over the 12 months ending 31 March, despite the challenges facing the city, with the trust manager declaring 96.56 percent occupancy at the end of the period, according to the annual report.Link REIT chief George Hongchoy said it had been a tough yearWhile vacancy levels have yet to creep upward, the trust did note a drop in its reversion rate in the 12-month period.
September/October 2019 (Magazine) Link REIT is the world’s second-largest retail REIT.
Link Reit, Asia’s largest real estate investment trust, is discussing rent relief with tenants at 10 of its malls in Hong Kong, it said during the announcement of its interim results on Wednesday. During the 2019-2020 financial year, Link REIT achieved an increase in income from its new leases of 12.1 percent, according to its annual report. Lambert Smith Hampton bid protagonist clarifies position That figure was down from the 21 percent average hike it was able to push through during the previous twelve months, as negotiations to secure higher rental rates from tenants became more difficult as the city’s economy slid.Link REIT CEO George Hongchoy conceded during the trust’s earnings presentation on Monday that 2020 had been a “tough year” with 35 out of the trust’s 126 retail assets in Hong Kong affected by the social unrest in the city, while all suffered from the lockdown imposed to stop the spread of the coronavirus during the weeks following the lunar new year celebration.The pandemic presented an escalation of the threat to the REIT’s business from e-commerce, with online shopping in Hong Kong surging despite the Asian financial hub being what the trust’s general manager of corporate development and strategy, Luna Fong, called one of the “last bastions” of bricks-and-mortar retail.Overall gross sales per square foot for the trust’s retail tenants dropped by 1.7 percent across Link REIT’s portfolio, a shift attributable in part to the switch to online shopping. Link Real Estate Investment Trust (0823) chief executive George Hongchoy Kwok-lung said the worst has passed for tenants and Link REIT is willing to cut rents to maintain a high occupancy rate. Magazine Link REIT: Hong Kong’s retail giant. Capital & Centric secures funding for £54m Liverpool film studioAmazon to up warehouse capacity by 50%Industrial and logistics sector isn’t immune to COVID falloutTemasek’s $3bn bid for Keppel may hit the buffersManchester pushes back on co-livingWeak property forecasts drive impairment provisions at Lloyds and NatWestGCP Student hit by lower bookings and WeWorkPets at Home leases giant West Midlands warehouseKorean investors could have wings clipped as regulators threaten overseas reformHenderson Park sells Irish office for €94m THE BUSINESS TIMES Link REIT - Find Link REIT News & Headlines, insight and analysis in Singapore, Asia-Pacific & global markets news at The Business Times. Korean investors could have wings clipped as regulators threaten overseas reform Link REIT exchanges on £380m London debut 27 Jul 2020 | by James Buckley London office market lifted by the capital's biggest deal of 2020 July 28, 2020 — Link Asset Management Limited (Link), the manager of Link Real Estate Investment Trust announced that it has agreed to acquire The Cabot, 25 Cabot Square, based on agreed property value … Florence Chong speaks to Link CEO George Hongchoy Get the latest LINK REIT (0823.HK) stock news and headlines to help you in your trading and investing decisions. Lambert Smith Hampton suitor in legal dispute with former employer