The balance will be deployed for pursuing future investment opportunities, with a focus on retail, car park, office and logistics sectors across Asia Pacific. Link has said none of the net proceeds has been earmarked for any specific investment opportunities.
The rights issue will lead to the unitholding base expanding by 20%, and hence cause a dilution in distributions per unit (DPU). “But, looking at how we are going to use proceeds in saving financing costs and parking this excess money before investment, earning deposit interest, we can get ready for investment opportunities that will come,” Ng adds.
Hongchoy alluded to the rights issue providing a boost to Link 3.0, where Link plans partnerships with capital partners to invest in properties, both directly and indirectly through private funds, where Link takes a more active asset management role. Hence Link may focus increasingly on a real estate investment manager (REIM) role.
Link started off in 2005 as an internally managed REIT holding suburban retail property and car parks in Hong Kong (Link 1.0) in its first 10 years. It expanded its asset class and into overseas markets such as mainland China, UK and Australia (Link 2.0). With the Singapore transaction where it is acquiring Jurong Point, Swing By @ Thomson Plaza, and the management contract for AMK Hub, Link’s management has embarked on a fee income trajectory.
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The Rights Issue is fully underwritten by the Lead Underwriters, namely HSBC, DBS and JP Morgan, subject to the terms and conditions of the Underwriting Agreement. HSBC is the Sole Global Coordinator of the Rights Issue.
