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Highlights
- Link and Oxford enters a joint venture - Investa Gateway Office venture.
- The joint venture allows Link and Oxford to acquire five office portfolios in Australia.
- The acquisition will cost AU$2.3 billion in total to Link and Oxford.
The Hong Kong-based property investment giant Link REIT (Real Estate Investment Trust) has entered a joint venture (JV) with Oxford Properties Group. The leading property investment firms will be investing AU$2.3 billion through the JV consisting of five office portfolios in Australia.
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The joint venture:
The deal allows Link to acquire a 49.9% stake in the Investa Gateway Office venture (JV). On the other hand, Oxford will acquire a 50.1% stake in the same. Acquiring a 49.9% stake will cost AU$596 million to Link for a headline price of AU$1.131 billion.
The JV comprises four office assets in Sydney and one in Melbourne. The holdings in Sydney are- 126 Phillip Street, 388 George Street, 151 Clarence Street, 347 Kent Street and 567 Collins Street in Melbourne.
Georga Hongchoy, the CEO of Link, mentioned that IGO is one of the most premium quality Australian office real estate assets offered to the market these days. He also said that the JV would allow Link to consolidate its position in Australia.
George also believes that the Australian economy is robust and investing here would lift up Link’s business game. It also aligns with Link’s business goals and growth strategy of diversifying and improving its portfolio mix in the region.
CBRE’s Greg Hyland, McCann and Flint Davidson brokered the deal. The joint venture transaction is expected to complete within the first half of 2022.
About Oxford:
Oxford Properties Group is a reputed real estate investor, asset manager and business builder established in 1960. The company is involved with buying and growing defined real estate operating business with its specialised management team. Oxford and its portfolio companies manage assets worth nearly CA$80 billion in four continents on behalf of their investment partners.
About Link:
Link Real Estate Investment Trust is a global retail-focused REIT. The company manages a diversified portfolio, including retail facilities, car parking and offices spread in Hong Kong, Beijing, Guangzhou, Shanghai, Shenzhen, London, and Sydney.
