Lendlease Global Commercial REIT priced S$200 million of perpetual securities at 5.25 percent per annum amid strong demand, the REIT said in a filing to SGX Monday.
The perpetual securities were 5.3 times subscribed, with orders topping S$780 million, with the offering upsized from the original S$150 million due to strong demand, the REIT said.
“Following the demand that was seen in the recently concluded private placement, we are immensely pleased with the outcome of the perpetual securities issuance. The oversubscription in both fundraising transactions is proof of investors’ confidence in us,” Kelvin Chow, CEO of the REIT’s manager, said in the statement.
The net proceeds will be used to refinance existing borrowings, finance potential acquisitions and investment opportunities, including the proposed acquisition of the remaining stake in the Jem property, and for general working capital, capital expenditure and general corporate uses, the REIT said.
The notes will have a distribution rate of 5.25 percent per annum for the first three years, with the first reset on 11 April 2025, followed by subsequent resets every three years, the filing said.
The securities will be issued as series 002 under the REIT’s S$1 billion multicurrency debt issuance program, the filing said.
DBS and OCBC are the joint global coordinators and joint bookrunners, and UOB is the joint bookrunner, the filing said.