News Alert: Asset disposal plan falls through
- Scrapped the plan to sell Stanley Plaza
- Stringent border control measures make it difficult for overseas buyers to conduct site inspection
- BUY with HK$81.80 TP; announcement unlikely to have significant impact on share price
Link REIT has reportedly scrapped the plan to sell Stanley Plaza. This was attributed to stringent border control measures in Hong Kong which has prevented interested overseas buyers from travelling to Hong Kong to conduct site inspections. This has prevented Link REIT from getting the highest possible price for Stanley Plaza.
In response to an unsolicited expression of interest, Link REIT invited interested parties to make an offer to purchase Stanley Plaza on a standalone basis in Feb-22. With an internal floor area of 98,382sf and 411 carparks, this retail development is a major shopping and leisure attraction for both tourists and residents from the neighbourhood. As of Mar-22, the property was valued at HK$1,407m.
We believe the proceeds from the potential sale of Stanley Plaza would be recycled for future acquisitions. That said, we believe this news should not have a significant impact on its share price since the disposal was not priced in.