Damo: It is expected that Linzhan Real Estate Fund (00823) will continue to sell non-core assets and reaffirms the “increase in holdings” rating

The Zhitong Finance App learned that Morgan Stanley released a research report saying that Lingzhan Real Estate Fund (00823) sold half of its interest in 100 Market Street in Sydney, Australia to Aware Super at a price of about 226 million Australian dollars, which is equivalent to a 6.5% exit yield. The proceeds from the sale may be used to further repurchase fund units, but since the current authorized amount of HK$1.5 billion has not been fully used, the use has not yet been determined. Damo anticipates that Lingzhan will sell more non-core assets. Potential targets include logistics assets in China and the London office building The Cabot. The bank reiterated the lead “gain” rating, and the target price remained at HK$44.