Seize the market in the Dawan District to attract 8 billion to buy Shenzhen shopping malls
Link (823) announced the purchase of the new Yijing Commercial Center in Futian, Shenzhen, for a price of 6.6 billion yuan (RMB, the same below) (HK$7.846 billion). This is the second acquisition of the first exhibition in Shenzhen and the Greater Bay Area of Guangdong, Hong Kong and Macau, and is the fifth property of the Group’s first-tier cities in the Mainland. Wang Guanlong, CEO of Link Exhibition, said that the acquisition will enable the Group to better grasp the high-speed growth opportunities brought by the development of the high-speed rail network and the Greater Bay Area.
The Link will pay for the acquisition with internal funds and/or existing lending arrangements, which are expected to be completed in March this year. Wang Guolong said that the new Yijing Commercial Center is located in the core of Shenzhen’s fast-growing commercial center. It is only a 5-minute walk from Futian High-speed Railway Station. The property is strategically advantageous. The exhibition will utilize the Group’s expertise in asset enhancement and operating malls. Enhance the flow of shopping malls and transform the new Yijing Commercial Center into a leisure and entertainment landmark in Shenzhen.
The mainland will occupy one hundred and three assets
The new Yijing Commercial Center has a retail area of approximately 903,100 square feet (approximately 83,900 square meters) and a retail occupancy rate of 100%. The total monthly revenue in December last year was 23.8 million yuan. The merchant portfolio includes catering, fashion apparel, education, lifestyle, health and beauty, supermarkets and cinemas.
According to the exhibition, after the completion of the transaction, it will have approximately 5 million square feet of retail and office floors in the first-tier cities in Beijing, Shanghai, Guangzhou and Shenzhen, while mainland assets will occupy a total asset value of approximately 13.1%. In the existing retail leases, the leases that will expire in 2019, 2020 and 2021 respectively accounted for approximately 25.5%, 24.8% and 18.0% of the rental income of the property, which enabled the Group to enhance the industry and merchant mix. Renewal rental and operating performance of the property.
Wang Guolong also said that while promoting the market diversification strategy, he will focus on the Group’s experience and advantages and continue to provide investors with stable income and long-term growth opportunities.