. not to be confused with hong kong link . industry property founded 2004 in hong kong founder hong kong housing authority key people george hongchoy products shopping malls parking lots owner sehk 0823 website linkreit.com link real estate investment trust chinese or ; sehk 0823 previously known as the link real estate investment trust chinese or managed by link asset management limited is the first real estate investment trust in hong kong and currently the largest in asia in terms of market capitalisation . it is wholly owned by private and institutional investors . link reit s portfolio consists of properties with an internal floor area of approximately 11 million square feet of retail space and approximately 80 000 car park spaces based almost entirely on the assets formerly operated by the hong kong housing authority . 1 contents 1 history 1.1 initial public offering 1.2 renovation of properties 1.3 acquisition of properties 1.4 sale of properties 1.5 renaming 2 criticism 2.1 market management 3 see also 4 references 5 external links history edit the reit was created by the government which hived off assets from the housing authority that included 151 shopping malls mainly within public housing estates and 79 000 parking spaces . the date for the listing was provisionally 16 december 2005 at a valuation of hk 22.2 billion us 2.86 billion . 2 3 upon privatisation link reit remains tied to terms in existing tenancy agreements but will not 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 . 2 initial public offering edit 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 . 4 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 . 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 . 5 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 . 6 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 . 5 some ngos also were concerned that the reduced income of the housing authority would eventually lead to rent rises for public tenants . 5 lo s request for judicial review of the privatisation was rejected at the court of first instance and the court of appeal . 6 renovation of properties edit 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 . 7 8 acquisition of properties edit in moves to diversify its property portfolio and mix link acquired the shopping mall portion of nan fung plaza with parking facilities in hang hau from nan fung group mid 2010 for a total of 1.17 billion . 9 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 . 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 . 10 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 . 11 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 . 12 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 . 13 sale of properties edit 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 . 5 14 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 . 15 renaming edit on 19 august 2015 link officially announces the changing of its corporate names . 16 criticism edit the link was called a bloodsucker by housing estate residents after the company acquired the housing authority shopping centres renovated them and raised rents . this has led to local shops being pushed out higher prices and the dominance of chain stores within the estates . 17 18 a 2012 campaign by the link to promote nostalgic restaurants in its shopping centres was widely derided on social media as hypocritical . users on golden forum and facebook wrote that the company first killed the shops then makes money from their death and criticised the company for only allowing chain stores in their properties . 18 in 2006 the link cut thousands of staff a move fiercely criticised by unionists who said link management had dishonoured a pledge to protect the welfare of its frontline workers when it took over the operation from the housing authority . the link replied that the job cuts were in line with private practice . 19 by mid 2015 ngo link watch published a report that showed big chains made up 76 % of the 2 075 shops in 22 malls run by the firm but the link riposted that it had a greater number of small shops its ceo said we continue to maintain roughly 60 per cent of our shops leased to smaller operators . 12 market management edit cheung fat market rebranded by the link as cheung fat modern market in addition to indoor shopping centres the link also acquired many local estate markets in 2005 . such markets are covered facilities with small stalls and shops let out to local residents generally offering fresh meat and vegetables as well as daily necessities and home wares . as with the shopping centres the link has raised rents and also renovated some properties leading to increased food prices and financial hardship on low income households . 20 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 . 21 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 . 20 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 . 20 the cheung fat stall owners also protested the outsourcing of the market s management to uni china market management limited which they feared will lead to untenable rent increases . 22 barriers set up by management at leung king estate against hawkers uni china market management also manages the market at leung king estate in tuen mun which is also owned by the link . 22 in february 2016 a group of men dressed in dark jackets with manager printed on the backs acted in an intimidating manner toward hawkers in the area of the shopping centre since 2 february . more than 200 showed up to protest against the men combating hawkers on the night of 8 february . some minor clashes broke out between the self proclaimed managers and the protesters and required mediation by the police . 23 two protesters were arrested and one reporter was injured during the clash . 24 conflicts between the management and the public reoccurred on the night of 9 february . the men were filmed beating up protesters while police stood by and prevented others from being involved . a reporter was also beaten up by the control team . 25 a 31 year old man was arrested for causing disorder in a public place . he allegedly interfered with a worker performing his duties at leung king estate . the link reit distanced itself from the clashes and denied the hawker control team was part of its staff . 26 see also edit securitisation see government securitization privatisation references edit asia s reit push forbes 29 september 2006 a b http www.scmp.com article 478463 property trust wins industry applause http www.ejinsight.com 20160516 link reit financial monster bred by govt forbes magazine 25 november 2005 a b c d cheng albert 13 june 2014 . link reit s sale of shopping centres will leave poorer residents worse off . south china morning post . retrieved 14 november 2014 . a b http www.scmp.com article 494213 legal aid granted challenger link reit case yau elaine 11 january 2016 . winners and losers from link reit s 2005 takeover of hong kong estate malls . south china morning post . tse pui man 2012 . asset enhancement of shopping centres pdf . faculty of architecture university of hong kong . chan may 10 june 2011 . link reit buy points at new direction . south china morning post . sito peggy 19 august 2014 . link reit agrees to buy wong tai sin shopping mall for hk 1.38 b . south china morning post . hong kong property market monitor pdf . jones lang lasalle . february 2015 . a b http www.scmp.com news hong kong economy article 1866365 hong kongs link reit looks brush its image 10 years tender result for government property at trade and industry department tower in mong kok announced . hong kong government . 19 february 2016 . sito peggy 22 may 2014 . link reit sells four malls for hk 1.24 b . south china morning post . retrieved 14 november 2014 . link reit disposes of five properties offers exceeding appraised value by over 30 % . link reit . 27 october 2015 . link unveils new corporate identity linking people to a brighter future . 19 august 2015