The acquisition would be 10.5% accretive to DPU based on equity fund raising comprising 1.26 billion new units at 82 cents ($1.037 billion) and the REIT’s 1HFY2022 performance. The remaining amount will likely be financed by debt.
Lendlease Global Commercial REIT’s (LREIT) manager announced on Feb 14, that the REIT plans to acquire the remaining stake of Jem it doesn’t own for $2,079 million. With the acquisition, LREIT will own 100% of Jem and give the REIT exposure to Singapore’s defensive suburban retail sector. Jem will double LREIT’s deposited property value to $3.6 billion.
Singapore will account for 88% of assets, and Europe 12%. Of this, Jem retail accounts for 46.8%, Jem office 12.9%, European office 12%, and prime Orchard Road retail 28.3%. Jem would also add a certain defensiveness and income stability because of its long weighted average lease expiry (WALE).
