Lendlease has sold its 30% interest in a suburban retail complex in Singapore, known as PLQ Mall for S$116m (€78m), valuing the property at S$885m, to the listed Lendlease Global Commercial REIT.
Last November, the REIT bought a 70% holding of the asset from Lendlease’s joint venture partner, Abu Dhabi Investment Authority, for around S$247m.
“By securing 100% ownership of PLQ Mall, we gain full management and operational control enabling us to shape the asset’s long-term performance and unlock value for our unitholders,” said Guy Cawthra, chief executive of the manager. “One hundred percent ownership also enables us to fully refinance in place borrowings, which is expected to result in meaningful savings.”
To finance the acquisition, Lendlease Global Commercial REIT has launched an underwritten non-renounceable preferential offering to raise gross proceeds of approximately S$196.6m, pricing the new units at S$0.558 each.
The REIT said proceeds from the raising would fund the acquisition and reduce debt at the Lendlease REIT level to ensure that consolidated gearing is maintained at a prudent level of 37.6% on a pro forma basis.
It said the acquisition would strengthen Lendlease REIT’s presence in Singapore with a total portfolio value of S$4.2bn, of which 90% is in Singapore.
Completed in 2019, the mall is part of the four-hectare Paya Lebar Quarter Integrated development comprising retail, office and apartments, valued at S$3.7bn on completion. It is one of the largest urban rejuvenation projects in the city state.
