Link REIT buys 50% stake in Sydney’s retail portfolio for $538.2M

Highlights

  • Hong Kong’s Link REIT becomes the new owner of the Galeries, the Strand Arcade and the Queen Victoria Building (QVB) in change for the $538.2 million.
  • It is the largest landmark transaction in Australia since late 2017.
  • As per the CBRE statistics, approximately $4.52 billion increased in the retail Q2 and Q3 retail investment of Australia, which is a 118% increase within a year.

Hong Kong’s Link REIT becomes the new owner of the Galeries, the Strand Arcade and the Queen Victoria Building (QVB) in change for the $538.2 million. Trust gains 50% interest in the retail property portfolio of Sydney.

Since late 2017, it is the largest landmark transaction in Australia, when Vicinity facilities purchased 50% interest in this trio of Australian centres.

Simon Roney, retail capital market’s CBRE head stated that                

As per the CBRE statistics, approximately $4.52 billion increased in the retail Q2 and Q3 retail investment of Australia, which is a 118% increase within a year.

The major acquisitions include 50% shares in Harbor Town gold Coast, Wollongong Central acquisition and Sydney's 100 Market Street office purchase for $683 million.

The acquired property includes 334 tenants (46.1% are unique), and 34,877 square meters of gross lettable space. Moreover, these three centres are the densely populated location of Australia as its total retail spending stand at $60.6 billion.

Bottom Line

The Galeries, The Strand Arcade and QVB can be interpreted as the premium locations in Australia because of the unique experience they provide and the kind of exposure it has in the Australian retail market. The acquisition has been conducted by Link REIT to improve and diversify its portfolio.

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