Link REIT to buy out Qibao Vanke Plaza in Shanghai for $451.2m

The REIT will fund the acquisition through internal resources.

Link REIT will acquire the remaining 50% stake in Qibao Vanke Plaza in Shanghai for RMB 2.38b ($451.2m), making it the sole owner of the five-storey shopping mall.

The REIT acquired an initial 50% interest in the asset in April 2021.

In an announcement, the REIT said it will fund the acquisition with its internal resources.

“Upon completion, the pro-forma adjusted ratio of net debt to total assets of Link is anticipated to change from approximately 19.3% to 20.4%. Allocation to Mainland China in Link’s portfolio will increase from 13.2% to 14.4%,” the REIT stated.

The REIT will also retain the mall’s existing retail manager for six months to “ensure smooth integration.”

Qibao Vanke Plaza is in Qibao Town, Minhang District, the second most populous administrative district in Shanghai. 

The five-storey shopping mall with a three-storey basement has a total gross retail area of 148,853 square metres and a car park with 1,477 parking spaces. 

The mall has also maintained a high and stable occupancy of approximately 95%. The property recorded a rental reversion of 11.2% in 2023 and a monthly passing income of RMB40.6m ($7.7m) as of 31 January 2024. 

The mall’s annual footfall for 2023 was 21.5 million, about eight times the permanent population of Minhang District and 80 times that of Qibao Town. The mall’s footfall was 11% and 45% higher than that of 2021 and 2022, respectively.