By Yifan Wang
Link Real Estate Investment Trust (0823.HK) has acquired an office tower in Sydney from certain funds managed by Blackstone Group Inc. (BX) for 683 million Australian dollars (US$468.1 million).
The deal represents the start of Link REIT's plan to grow exposure outside of Hong Kong and mainland China as it seeks to reduce dependency on its home turf and diversify to major developed markets such as Australia, Singapore, Japan and the UK.
The latest acquisition represents approximately 1.7% of the total assets of Link REIT as at 30 September 2019. Link plans to fund the deal through bank loans and internal resources, it said in a statement on Thursday.
"A more diversified portfolio with overseas properties providing new sources of income will help ease our reliance on Hong Kong properties to generate income progression," said George Hongchoy, chief executive.
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