Link Reit plans HK$19.3 billion rights offering to expand war chest

LINK Reit, one of Asia’s largest real estate investment trusts by market value, is planning a HK$19.3 billion (S$3.3 billion) rights offering to bankroll expansions. 

The company will issue as many as 437.7 million shares at HK$44.2 apiece on the basis of one for every five existing shares, it said in a filing to the Hong Kong stock exchange on Friday (Feb 10), confirming an earlier Bloomberg News report. It will use the proceeds for repaying existing debts and pursuing investment opportunities. Its net gearing ratio will decrease to below 20 per cent. 

Hong Kong-based Link has been actively expanding overseas in recent years. In December, it said that it would enter Singapore’s market for the first time by acquiring two suburban shopping malls.

The company aims to diversify further in the future with a focus on the Asia-Pacific, including Singapore and Sydney, Ronald Tham, chief corporate development officer, said in a media call following the announcement.

Link Reit has properties including shopping centres and office buildings in Hong Kong, mainland Chinese cities, Melbourne, Sydney and London. It invests in retail facilities, car parks, offices and logistics centres. It managed a portfolio worth HK$234 billion as at September-end. 

“The proposed rights issue will strengthen Link Reit’s capital base and position us to capture accretive investment opportunities amid real estate markets’ repricing,” chairman Nicholas Allen said.  BLOOMBERG