Leading 12 shopping mall set 12 billion base exchange consortium re-stocking premium narrowed to 32%
After the exhibition (00823) sold its 17 mall properties for $23 billion last year, it was about one year later, and then took out 12 shopping malls with a total price of 12.01 billion yuan. The buyers were the consortium led by Kehui Capital. The price is about 32.1% higher than the property valuation in September this year, but the premium of the over 50% of the 17 stores sold last year has narrowed significantly. The consortium led by Gem Capital has spent more than $35 billion in the past year to undertake 29 mall properties under the Link.
The Link announced that it had sold 12 properties through a competitive sales process yesterday and signed an agreement with the Gem Capital Consortium for a total consideration of $12.01 billion. According to the Link, the net income from the sale of the property is 2,787.6 million yuan. The proceeds from the sale of assets will be used for new investment opportunities in first-tier cities in Hong Kong and Mainland China, as well as general working capital purposes such as debt repayment and repurchase of fund units. The sale of the property will be completed on March 13 next year. The share price of Linkage closed at 77.9 yuan yesterday, up 0.75 yuan (0.97%).
Mountain View Shopping Mall involves 1.836 billion of the most expensive
It is understood that the consortium is led by Gem Capital, and its partners include Goldman Sachs and Blackstone Group of the United States. The 12 properties sold by the Link include the Tuen Mun Hillview Shopping Centre, Fanling Wah Ming Shopping Centre and Ap Lei Chau Lei Tung Shopping Centre. The total number of carparks is 4789. The transaction price of each property is 23.3% higher than the valuation and 42.5%. Wait. Among them, the largest Tuen Mun Mountain Shopping Mall was sold at 1.836 billion yuan, making it the most expensive shopping mall. The Link reiterated that it maintained close communication with merchants, neighbouring residents and other stakeholders on matters such as the transfer of 12 property titles and the buyer’s commitment to undertake the covenants of the Hong Kong Housing Authority.
Last year, the company sold 17 properties for $23 billion. The buyer was the first consortium of Gem Capital, but the transaction price was 52% higher than the valuation. Market participants estimate that under the worsening market conditions, the consortium’s bids have also become more cautious, and the premium has narrowed compared to last year.
Wang Guolong: Global investors have confidence in Hong Kong
Wang Guanlong, CEO of Link Exhibition, said that despite the recent fluctuations in market conditions, the property sales have received global and regional private equity funds, as well as the enthusiastic response of local investors. Competitive bidding and final sales prices are more attractive than the price of the last sale of the property, highlighting the confidence of global investors in Hong Kong’s economy and real estate industry. He is convinced that with the expertise and experience of the buyer in asset management, it will further enhance the property operations and create value for stakeholders.
In September of this year, the company commissioned HSBC and DTZ to evaluate the asset portfolio to optimize the asset portfolio, which may involve potential asset sales or acquisitions. In the end, the exhibition announced on the 26th of last month that it would acquire Jingtong Roosevelt Square in Beijing for 2.56 billion yuan (about 2.937 billion Hong Kong dollars). Taking into account the sale of 12 properties, the Link will have approximately 90.1% of its assets in Hong Kong and approximately 9.9% in Mainland China; the total value of the portfolio will be approximately RMB 204 billion.
At the beginning of the listing in 2005, Link has a total of 180 investment property portfolios. Since 2014, the Group has sold 57 property properties in 7 batches, accounting for more than 30% of the original assets, totaling nearly 47 billion yuan. The leading consortium accounted for 29 of them.
Wu Jiyu, Chairman and Managing Partner of Kehui Capital, said that he is confident in the prospects of Hong Kong and believes that these malls will continue to provide important services to local communities and work with NGOs and existing tenants to build a better community.