Lendlease Global Commercial REIT (LREIT) is acquiring the remaining interest in Jem.
The REIT presently owns a stake of about 31% in the asset.
For the acquisition’s consideration, the agreed value of the property is SGD2,079 million.
Benefiting from a 30-year master lease with a rent review of every five years with Singapore’s Ministry of National Development, Jem’s office component will provide a strong and stable cashflow to unitholders, said LREIT.
Post- acquisition, LREIT’s total portfolio net lettable area will increase by 70.0% to approximately 2.2 million square feet, and WALE will increase to 8.9 years.
The enlarged portfolio is also expected to uplift LREIT’s FY2021 net property income (NPI) to SGD147.8 million from SGD56.9 million resulting in a FY2021 NPI yield of 4.2%.
The REIT will conduct an equity fund raising exercise to fund the acquisition.
This may comprise a private placement and a non-renounceable preferential offering.
LREIT was last done done on the Singapore Exchange at SGD0.84, which presently implies a distribution yield of 5.71% according to data on the Singapore REITs table.