Link REIT purchases Shanghai office towers for $1b

The Link Management Ltd., the manager of The Link REIT, has agreed to acquire Corporate Avenue 1 and 2 in Shanghai for 6.6 billion yuan ($1.07 billion). The seller was Shui On Land Ltd., which developed the towers in 2004.

This marks Link REIT’s first acquisition of a mixed-use property (with office and retail components) in mainland China, following its recent $399 million acquisition of Beijing’s EC Mall in April this year.

The mixed-use asset is located in Shanghai’s core CBD in Taipingqiao/Xintiandi area in Huangpu District. It is in close proximity to Shanghai’s retail destination of Huaihai Middle Road.

The property has a gross floor area (including the basement) of approximately 1.05 million square feet. Corporate Avenue 1 is a 21-floor tower comprising 19 floors of office space. Corporate Avenue 2 is a 10-floor tower comprising 8 floors of office space. Two floors of retail space at the street and first floor levels con