Strong Investor Interest Leads to Increased Issuance of S$200 Million in Perpetual Securities
Lendlease Global Commercial Real Estate Investment Trust (Reit) announced on Monday (April 4) that its inaugural perpetual securities issue for the year attracted significant demand, being subscribed 5.3 times with orders surpassing S$780 million. This strong interest prompted the Reit to raise the issuance size from an initial target of S$150 million to S$200 million.
The perpetual securities, which mark the Reit’s second series, were priced at 5.25% per annum, surpassing the 4.2% rate offered during the first series last year. This issuance, part of the Reit’s S$1 billion multicurrency debt programme, will feature a 5.25% annual distribution rate for the first three years. After that, the rate will reset every three years, with the first reset scheduled for April 11, 2025.
The net proceeds from this offering will be used for the acquisition of potential investment opportunities, including the proposed purchase of the remaining shares in the Jem mall. Additionally, the funds will be directed towards refinancing current debt, general working capital, capital expenditure, and corporate purposes.
DBS and OCBC are serving as joint global coordinators and bookrunners, while UOB is also a joint bookrunner for the perpetual securities offering. Before the announcement, Lendlease Reit’s shares (JYEU: JYEU 0%) saw a 2% rise, closing at S$0.785.
