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LinkREIT acquired 75% shares of two logistics assets in Greater Bay Area, marking the growing interest in logistics properties from domestic and abroad investors

Hongkong EN 1530

LinkREIT acquired 75% shares of two logistics assets in Greater Bay Area, marking the growing interest in logistics properties from domestic and abroad investors

In November, Link Real Estate Investment Trust acquired 75% of the shares of two distribution centres located in Dongguan and Foshan, Guangdong Province, at a total price of RMB754 million (US $118 million). Almost at the same time, link also acquired 100% interests of two car parks, service centres, and warehouses located in Chai Wan and Hung Hom in Hong Kong at a total price of HK $5.82 billion (US $747 million).

Colliers’ View:

LinkREIT previously focused on the acquisition of commercial projects and this is the first logistics acquisition in Mainland China. Dongguan and Foshan, as two important manufacturing cities in Great Bay Area (大湾区), have undertaken the spillover warehousing demand from Guangzhou and Shenzhen. The demand for logistics warehousing in the two cities has increased rapidly, with the stock of high-standard warehouses totaling above 2 million square metres and the average vacancy rate below 5%.

Relying on its advantageous transportation hub position, the leading advantages of high-end manufacturing and high-tech industries, the sustainable development of Internet e-commerce, logistics and warehousing industry in GBA has a great development potential. Logistics properties with stable rental income and asset value growth rate are expected to attract more attention from domestic and abroad investors.