Link Reit Moves Into UK Market With HK$3.8bn Deal

Hong Kong property group Link Reit has made its first move into the British market, buying an office block in London's Canary Wharf for HK$3.8 billion.

The trust, which operates shopping centres and car parks at many of the SAR's public housing estates, said on Sunday that the deal for The Cabot was part of a strategy to "diversify and improve" its portfolio.

"The Cabot is exactly the kind of stable income-producing high-quality asset with long-term growth potential that we’re looking for," Link CEO George Hongchoy said.

"Going beyond our home Hong Kong and Mainland China, we’re looking at opportunities in the UK, Singapore, Australia and Japan – transparent and liquid markets with sound legal frameworks and strong economic fundamentals."

The building's tenants include an investment bank and a government department. Link Reit expects an investment yield of about 5 per cent.

Founded in 2004 and listed in 2005 as Hong Kong's first real estate investment trust, Link Reit was created by the government for the privatisation of shops and car parking spaces run by the Housing Association.

It's since expanded into the mainland and made its first overseas acquisition, an office block in Sydney, in January.

The business has long been a target for criticism by community groups and politicians from across the spectrum in Hong Kong. They've accused it of pushing up rents and of providing shops that don't meet the needs of public housing residents.

There was further criticism in 2017 for selling off several Hong Kong malls to a consortium including Gaw Capital and Blackstone.

Last year Chief Executive Carrie Lam said she was "concerned" about the way Link Reit conducted its business.