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Link REIT
Hong Kong real estate investment trust From Wikipedia, the free encyclopedia
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Link Real Estate Investment Trust (Chinese: 領展房地產投資信託基金, or 領展), previously known as The Link Real Estate Investment Trust (領匯房地產投資信託基金, or 領匯), is a leading independent and fully integrated real estate investor and manager with a focus on the Asia-Pacific (APAC) region.
Link REIT remains the largest REIT in Asia by market capitalization. Since its listing in 2005 as the first REIT in Hong Kong (Hong Kong stock code: 823), Link REIT has been 100% held by public and institutional investors.
Starting as an owner and manager of a portfolio of shopping centres and car parks in Hong Kong valued at about HK$33 billion at its IPO, Link REIT has transformed into a market leader with a diversified portfolio worth HK$241 billion. The portfolio spans retail facilities, car parks, offices, and logistics assets across Hong Kong, Mainland China, Australia (Sydney and Melbourne), Singapore, and the UK (London). Link Real focuses on extending its global growth trajectory, identifying expansion opportunities, and maintaining sustainable development.
The company’s management approach is structured around three core pillars: asset management, portfolio management, and capital management. Link REIT is a constituent of the Hong Kong securities market benchmark Hang Seng Index and is recognized for its sustainability efforts as a component of the Dow Jones Sustainability Asia Pacific Index, the FTSE4Good Index Series, and the Hang Seng Corporate Sustainability Index.
Link REIT has its head office at The Quayside in Kwun Tong.
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History
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The Link REIT was established by the Hong Kong government, which split off assets from the Hong Kong Housing Authority that included 151 retail facilities[2][3] – mainly within public housing estates – and 79,000 parking spaces. The date for the listing was 25 November 2005,[4] at a valuation of HK$22.02 billion (Valuation = 2,137,454,000 x HK$10.30 = HK$22.02 Billion) (US$2.82 billion).[5] Upon privatisation, Link Reit remains tied to terms in existing tenancy agreements, but will no longer require approval from government to increase rents for new leases. However, financial analysts expected attractive dividend yields – up to 7 per cent – from the privatised company and greater commercial orientation, although some feared that the scope for increasing rental income and cutting labour costs might be limited due to most of its properties being tied to the public housing sector.
Initial public offering
IPO of The Link REIT, delayed for a year until 2005 through legal action by housing tenants worried that rents would rise, was eventually 18 times oversubscribed.[6] About 510,000 Hong Kong residents, or seven percent of the city's population, placed US$36 billion of orders while institutional investors were ready to commit US$40 billion.
The IPO's joint global coordinators were Goldman Sachs, HSBC Holdings plc, and UBS AG. JPMorgan Chase & Co. was the financial adviser to the Housing Authority.[7]
The proposed flotation of The Link REIT by the Housing Authority was delayed when a public housing tenant, Lo Siu-lan, challenged the legality of the proposed divestment of the properties.[8][9] Lo's lawyer submitted that the Housing Authority had "breached its duty under the Housing Ordinance to provide housing to people in need. Instead, it was selling assets to a private company, which could sublet the properties at market rates rather than benefiting the underprivileged".[10] She represented a concern among many residents of public housing that existing amenities would no longer be public and that The Link would raise rents, thereby forcing price rises in shops without due consideration of the public good. Some NGOs also were concerned that the reduced income of the Housing Authority would eventually lead to rent rises for public tenants. Lo's request for judicial review of the privatisation was rejected at the Court of First Instance and the Court of Appeal.[10]
Since the listing in 2005, Link has engaged in a process of 'asset enhancement works', seeking to raise the value of the properties through upgraded physical structure, replacing low-end utility local shops with higher-paying brands and chains, enhanced 'customer service', and promotional activities. The Link also overhauled many of the wet markets under its management. The renovations have led to higher rents, higher prices, and the loss of local shops.[11][12][13]
Acquisition of properties
In moves to diversify its property portfolio and mix, Link acquired the shopping mall portion of Nan Fung Centre with parking facilities in Hang Hau, from Nan Fung Group mid 2010 for a total of $1.17 billion.[14]
In late 2010, Link acquired the shopping mall portion of Maritime Bay Shopping Mall with parking facilities in Hang Hau, from Sino Group, for a total of $588.4 million[15]
In mid 2014, Link acquired The Lions Rise Mall with parking facilities in Wong Tai Sin, from Kerry Properties, for a total of $1.38 billion.[16]
In 2015, The Link took its first step in purchasing by government land auction when it partnered with Nan Fung Group to buy land lot NKIL 6512 in Kwun Tong for a total of $5.86 billion in January.[17] Then, Link surprised the market by successively making its first two purchases in mainland China, when it acquired Beijing EC Mall, for a consideration of ¥2.5 billion; it acquired two commercial buildings in Shanghai for ¥6.6 billion. The company has a target where mainland properties would not exceed 12.5% of its portfolio.[18]
On 19 February 2016, a subsidiary of the Link purchased the Trade and Industry Department Tower in Mong Kok (formerly the Argyle Centre Tower II) from the government for a sum of HK$5.91 billion.[19] The commercial property has been transformed into a retail destination through asset enhancement work called T.O.P This is Our Place. It consists of eight floors of retail space with a basement linked directly to the exit of Mong Kok MTR station and a rooftop garden on 5/F.
In April 2020, LINK REIT completed its purchase of 100 Market Street in Sydney at approximately AUD683 million from Blackstone Group. It is a building is 10-storeys office tower of 28,385 square metre above the Westfield mall in Sydney's CBD.[20]
In July 2020, Link agreed to acquire The Cabot, 25 Cabot Square in UK, based on agreed property value of £380 million.[21]
In November 2021, Link announced acquire 50% interests in the three retail assets in Australia, namely Queen Victoria Building (QVB), The Galeries and The Strand Arcade for a total of A$538.2 million.[22]
In December 2022, Link acquired two shopping malls in Singapore for $1.6 billion from Mercatus Co-operative.[23]
Sale of properties
In mid-2014, Link REIT sold four commercial properties, to four different buyers, for a total of $1.24 billion. The properties are Hing Tin Commercial Centre (in Lam Tin), Kwai Hing Shopping Centre (Kwai Chung), the Tung Hei Court shopping centre (Shau Kei Wan), and Wah Kwai Shopping Centre (Pokfulam).[24]
In late 2015, they sold five properties, namely: Fung Wah Estate Retail and Car Park, Ka Fuk Shopping Centre, Kwong Tin Shopping Centre, Siu On Court Retail and Car Park, and Tin Wan Shopping Centre.[25]
In late 2016, they sold five properties again, namely: Sui Wo Court Commercial Centre, On Yam Shopping Centre, Sun Tin Wai Commercial Centre, Cheung Hong Commercial Centre and Shek Wai Kok Commercial Centre.[26]
Green Bond
Link issued Hong Kong's first corporate green bond in 2016, pioneering sustainable finance. By engaging with investors and capital providers, Link aims to align financing with its sustainability goals and enhance collective impact.[27]
Change of Name
On 19 August 2015, Link announced the changing of its corporate name to Link REIT.[28] Some have alleged that the purpose of the name change is to disassociate itself from its past activities.[29]
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Senior Leadership
- Chairman: Duncan Gareth Owen (since July 2024)[30]
- Chief Executive: George Hongchoy (since May 2010)
List of former chairmen
- Peter Wong (2004–2005)
- Paul Cheng (2005–2007)
- Nicholas Sallnow-Smith (2007–2016)
List of former chief executives
- Victor So (2004–2007)
- Ian Robbins (2007–2010)
Properties
Link REIT owns and manages a diversified portfolio that includes retail facilities, car parks, offices, and logistics assets across China, Australia, Singapore, and the UK. The portfolio’s total value is HK$241 billion as of March 31, 2024, which includes 49.9% of the value of prime office properties in Sydney and Melbourne.[31]
Link REIT's properties in Hong Kong account for 74.7% of the total portfolio value. This includes 130 properties, with retail facilities making up 52.4%, car parks and related businesses 19.8%, and office properties 2.5%.[32]
In Mainland China, Link REIT has 12 properties, representing 14.6% of the portfolio value. These include 11.3% in retail, 2.2% in office, and 1.1% in logistics.[33]
In Australia, Singapore, and the UK, Link REIT holds another 12 properties, making up 10.7% of the portfolio value. These properties account for 6.7% of retail space and 4.0% of office space.[34][35]
Reception
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The Link was called a "bloodsucker" by public housing estate residents after the company acquired the Housing Authority shopping centres, renovated them, and raised rents.
By mid 2015, NGO Link Watch (領匯監察) published a report that showed big chains made up 76 per cent of the 2,075 shops in 22 shopping centres run by the firm, but the Link's CEO claimed, "We continue to maintain roughly 60 per cent of our shops leased to smaller operators."[18]
Anti-Link REIT protests have become increasingly common in recent years.[36] Link REIT headquarters in Kwun Tong has been the site of demonstrations, scuffles, and sit-ins, leading the company to seek a court order to bar activists from entering the building.[37][38]
The Link has raised rents and also renovated some properties, leading to increased food prices and financial hardship on low-income households.[39]
In Tin Shui Wai, where The Link exercises a near-monopoly on commercial space, the company was criticised by local residents and Legislative Councillors in 2015–16 for planning to convert the Tin Yiu Market into a conventional shopping centre.[40] The market supplies fresh vegetables, meat, and fish to residents of the surrounding public housing estates. The next closest market is 5 to 10 minutes' walk away.
Stall operators at Cheung Fat Estate on Tsing Yi have gone on strike, in 2010 and 2016, to protest rent increases.[39] By the latter strike it was reported that rents had doubled in ten years. Some local residents stated that they visit a government-run market in Tsuen Wan instead owing to the higher prices at Cheung Fat.[39] The Cheung Fat stall owners also protested the outsourcing of the market's management to Uni-China (Market) Management Limited.[41]

Uni-China (Market) Management also manages the market at Leung King Estate in Tuen Mun, which is also owned by The Link.[41] In February 2016, individuals in dark jackets marked "manager" intimidated hawkers near the shopping centre. Protests erupted on 8 February, resulting in minor clashes and police mediation. Two protesters were arrested, and a reporter was injured. The next night saw further conflicts, with men reportedly beating protesters and a reporter while police intervened. The Link denied involvement, stating the hawker control team was not their staff.[42][43]
In 2016, the Environmental Protection Department prosecuted Link REIT under the Water Pollution Control Ordinance due to illegal wastewater discharges from the Mei Lam Shopping Centre into the Shing Mun River.[44] The company was fined $15,000 in November 2016 and ordered to immediately rectify the situation.[45]
Effects of renovation on air quality and pollution
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Government response

Link REIT has faced widespread condemnation from both sides of the political spectrum. Starry Lee of the pro-Beijing DAB reported that former chief executive Leung Chun-ying "strongly criticised" Link REIT, questioning whether its top management's remuneration structure influenced its behavior.[46] Leung emphasized the government's responsibility to public housing tenants and opposed Link REIT's monopoly in public estates, suggesting exploring alternatives if necessary.[47]
Former chief executive Carrie Lam referred to Link REIT as one of the "three mountains" causing significant contention in Hong Kong and suggested the government might consider legal action against the company.[46] In April 2019, legislator Alice Mak urged the government to address these issues by amending the Housing Ordinance, constructing more public markets, inspecting Link REIT properties, and possibly buying back and managing Link REIT properties to provide better options for residents.[48][49]
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See also
- Privatisation
- Securitisation – see "government securitisation"
References
External links
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