Hong Kong-listed Link REIT has bought a retail centre in Beijing’s Tongzhou district for RMB2.56bn (US$374.6m) to take advantage of the area’s rapidly growing population.
The 67,546 sq.m. Beijing Jingtong Roosevelt Plaza is the REIT’s second acquisition in the capital, according to the company.
The seven-storey property has 268 tenants, reflecting a 96.2% occupancy rate, and generates a monthly gross income of RMB10.3m.
The Tongzhou district is home to high-density residential communities, while government authorities are planning to relocate numerous public facilities to the area.
“This metro-linked retail property is located in the rapidly developing district of Tongzhou, which has recorded robust growth in residents’ disposable income in recent years,” said Link Asset Management CEO George Hongchoy.
“The upcoming new residential developments around the property, coupled with the Government’s plan to relocate many municipal departments to the district, bode well for the demand for food and beverage, lifestyle, kids/education and entertainment services.”
The retail centre is adjacent to the Jiukeshu metro station and a 23-storey office building.
The new deal increases the company’s mainland Chinese holdings to 9.5% of its total assets under management.
Link REIT invests in and manages retail, car park and office real estate across Hong Kong and mainland China.