Link REIT has snapped up three Sydney assets – two years after choosing the city for its first property investment outside of China.
The Hong Kong based group today confirmed it is paying $538.2 million for a half stake in the Queen Victoria Building, The Galeries and Strand Arcade.
The vendor was Singapore sovereign wealth fund GIC.
Upon settlement in the first half of next year, the assets will be co-owned with Vicinity, which will continue to manage them.
Link expands in Australia
The Link deal was mooted in September; EG is the buyer’s local fund manager.
The price reflects a circa five per cent capitalisation rate.
QVB is the most expensive asset – trading for $277.1m (story continues below).
The Galeries exchanged for c$149.9m.
“The acquisition of this prime retail portfolio is part of our Vision 2025 growth strategy to diversify and improve our portfolio mix,” Link chairman Nicholas Allen said.
Chief executive officer George Hongchoy added “given the high occupancy rate filled with leading Australian and international brands, the portfolio is well-positioned to capture the retail rebound with the improving consumption sentiment in the country”.
The blended vacancy rate 5.7 per cent.
“The portfolio possesses strong productivity in terms of total moving annual turnover per square metre with the Strand Arcade and QVB being ranked first and second in Australia,” the buyer said.
The historic QVB is Sydney’s second most visited site after the Opera House, it added.
Link’s maiden Australian purchase was an office, 100 Market Street, acquired for $683m from Blackstone.
Subscribe to our newsletter at the bottom of this page.