Link REIT purchases Trade and Industry Department Tower in Kowloon
We are advising Link Real Estate Investment Trust ("Link REIT”) on its agreed purchase of Trade and Industry Department Tower of No. 700 Nathan Road, Kowloon (formerly, “Argyle Centre Tower II”) for HK$5.91 billion. The property, a retail-cum-office building with connection to Mongkok MTR station, was sold by The Financial Secretary Incorporated of the Government by way of Government open tender. Other than some leased shops on the ground floor, the remainder of the building, once occupied by Government departments, is vacant. Completion is anticipated to take place in April 2016 in accordance with the terms of the Tender Agreement.
The Baker & McKenzie team for the acquisition was led by Debbie Cheung, partner in the Firm's real estate practice in Hong Kong/China.
Baker & McKenzie has handled a number of deals for Link REIT, most recently its acquisition of Corporate Avenue 1 & 2 in Xintiandi, Shanghai for RMB6,600.86 million as well as its successful bid for Government land, situated in Kwun Tong, Kowloon, through a joint venture with Nan Fung for HK$5.86 billion.
Commenting on the deal, Debbie Cheung said, “We are delighted to have the opportunity, once again, to support Link REIT in another significant transaction. We look forward to seeing Link REIT's renovation of the property and continuing to work with Link REIT on the expansion of its portfolio in the future."
Spanning Hong Kong, Beijing and Shanghai, the portfolio owned by Link REIT consists of properties with an internal floor area of approximately 11 million square feet (“sq ft”) of retail space, a gross floor area of approximately 816,000 sq ft of office space, approximately 76,000 car park spaces and an office project under development.
Baker & McKenzie’s Hong Kong/China Real Estate Group has extensive industry knowledge and solid experience in all aspects of property law, including major property developments, acquisitions, disposals and formation of joint ventures in relation to real estate, as well as management and operation of properties, particularly hotels and branded residences. The Group has been involved in a number of recent high profile transactions, in addition to those involving Link REIT, including advising Wheelock Properties Limited on its landmark HKD5.425 billion (USD699.86 million) sale of the East Tower at One Bay East, Kowloon East; advising Sino-Ocean Land Holdings Limited on its joint venture investment with Nan Fung International Holdings Limited in the development of MTR Corporation Limited Lohas Park Package Six Property Development and advising CLSA Capital Partners (HK) Limited in relation to the sub-dividing and sale of commercial accommodation in a mixed used building located in Russell Street, Causeway Bay.