Lendlease Global Commercial REIT (Lendlease REIT) had announced to its unitholders of their intention to acquire the remaining 68.2% interest in Jem, a large sub-urban mall cum office complex located in Jurong East. An extra-ordinary general meeting would be held on 7 Mar 2022 with regards to this acquisition.
Post-acquisition wise there will be dramatic shifts in the entire Lendlease REIT’s portfolio. Here are some selected highlights:
- The acquisition would increase Lendlease REIT itself by 157% by valuation (from SGD 1.4bn to SGD 3.6bn).
- The Jem property (both retail and office) would form a substantial part of the portfolio by valuation (59.7%).
- Local exposure would be increased from 76.5% to 88% by valuation.
- Top ten tenants’ contribution by gross rental income (GRI) would be reduced from 57% to 41%.
The advantages of the acquisition include:
- A potential distribution-per-unit accretion of up to 10.5% (for 1H FY2022 pro forma effects).
- A 0.5-year increase of weighted average lease expiry (from 8.4 to 8.9, based on net lettable area as at 31 Dec 2021).
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