Lendlease Global Commercial REIT (LREIT) is investing S$2.07bn (€1.4bn) to buy the remaining stake in a Singapore shopping mall it doesn’t already own.
LREIT currently holds an indirect stake of 31.8% in the Jem shopping mall.
The Singapore-listed REIT’s stake in Jem is owned through its 24.8% interest in Lendlease Asian Retail Investment Fund 3 (ARIF3) and 53% interest in Lendlease Jem Partners Fund (LLJP).
ARIF3 and LLJP are both private funds owning 75% and 25% respectively of Jem.
Kelvin Chow, chief executive officer of the manager, said: “The acquisition of Jem is a natural transition for us as we recognise its benefits and resiliency throughout the pandemic.
“The suburban retail market continues to perform well, and we believe the Jurong region and its upcoming development plans will provide great catchment for Jem.”
The global property trust plans to fund the acquisition with up to A$1.015bn through equity fundraising. The balance will be funded with debt.
LREIT said the enlarged portfolio would increase its total portfolio of net lettable area by 70% to around 2.2m sqft, and lift its total deposited property to S$3.6bn.
Currently, LREIT owns two other retail outlets in Singapore – 333@Somerset and Sky Complex. It also has three office buildings located in Milan, valued at around S$1.4bn.
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