Lendlease Global Commercial REIT preferential offering oversubscribed

The MRT walkway at the Jem property in Singapore. Lendlease Global Commercial REIT entered a deal in February 2022 to acquire the remainder of the Jem property it didn't already own. Credit: Lendlease Global Commercial REITThe MRT walkway at the Jem property in Singapore. Lendlease Global Commercial REIT entered a deal in February 2022 to acquire the remainder of the Jem property it didn't already own. Credit: Lendlease Global Commercial REIT

Lendlease Global Commercial REIT‘s preferential offering of 345.58 million new units at S$0.72 each was around 1.4 times subscribed, raising around S$249 million, the REIT said in a filing to SGX Thursday.

The offering was on the basis of 29 new units for every 100 units held, the filing said. 

Valid acceptances were received for 90.2 percent of the preferential offering, while applications for any excess units not taken up by unitholders were for 47.1 percent of the units offered, the filing said, not the offering was 137.4 percent subscribed. 

The preferential offering followed a private placement which was 3.3 times subscribed, with strong demand from long-only institutional investors and real estate specialist funds, with the amount placed raised to S$400 million from the initially planned S$325 million, the REIT said. 

LREIT also issued perpetual securities in an offering upsized to S$200 million from the initial S$150 million target, and a sustainability-linked loan with rate reductions for meeting performance targets, the filing said. 

Altogether, the REIT raised more than S$1.7 billion, which will be used to finance the acquisition of the remainder of the Jem property it doesn’t already own, the filing said. The proceeds of the equity fundraising, including both the private placement and the preferential offering, came to around S$648.8 million, the filing said.

In February, LREIT announced it would acquire the 68.2 percent of Jem it didn’t already own for S$2.08 million. 

The new units from the preferential offering are expected to begin trade on SGX on 21 April, the filing said. 

Lendlease Corp., the REIT’s sponsor, took up its full allotment of preferential offering units, will see its total interest in LREIT decline to 19.52 percent of the enlarge share capital from 26.53 percent previously, the filing said.

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