Link Real Estate Investment Trust : REIT Disposes of Five Properties at HK$3.64 Billion Offers Exceed Appraised Value by 29%

Link Asset Management Limited ('Link Asset Management'), as the manager of Link Real Estate Investment Trust ('Link REIT'; Hong Kong stock code: 823), today announced that on 16 Dec 2016, Link REIT (through the vendor) entered into agreements with five different buyers in respect of the disposal of the following five properties by tender:

(i) Sui Wo Court Commercial Centre
(ii) On Yam Shopping Centre
(iii) Sun Tin Wai Commercial Centre
(iv) Cheung Hong Commercial Centre
(v) Shek Wai Kok Commercial Centre

Having considered the appraised value of each property and with reference to recent commercial investment property transactions in Hong Kong, the manager decided to accept the tender documents submitted by and enter into the accepted tender documents with the purchasers. The consideration for each property represents the highest price tendered for the purchase of the relevant property.

The aggregate consideration for the five properties offered by the winning bidders amounts to HK$ 3.64 billion, which exceeds their total appraised value as at September 2016 by 29%. The selling price for each of the five properties represents a premium ranging from 13% to 62% over the relevant appraised values.

George Hongchoy, Chief Executive Officer of Link Asset Management said, 'The tender attracted a broad range of interested parties including listed companies, local private investors, investors of mainland Chinese background, with a large number of offers received for these properties.'

Disposal is part of Link REIT's capital recycling strategy to create value for its unitholders. Link, as a responsible manager, continues to review the portfolio for opportunities to streamline and improve operating efficiency.

Proceeds will be used for general working capital purposes including debt repayment and, where appropriate, unit buy-back. Completion of the disposals shall take place on 14 February 2017.

Link Asset Management will communicate with tenants, nearby residents and other stakeholders to keep them informed on matters relating to the transfer of ownership of the five properties.