Lendlease Global Commercial REIT to acquire the remaining 30% interest in PLQ Mall it does not already own, further boosting its exposure to Singapore assets.
To fund the acquisition, the REIT is launching an underwritten non-renounceable preferential offering to raise $196.6 million by issuing nearly 352.4 million units at 55.8 cents each at a ratio of 119 new units for every 1,000 existing units.
The acquisition of this remaining 30% stake will be at an agreed property value of $885.0 million, which is the same as the 70% acquisition transaction last November. This represents an approximate 2.2% discount to the appraised value of the asset.
Around $113.8 million in proceeds to be raised will be used to fund the acquisition, and the remainder will be used to reduce debt at Lendlease REIT level to ensure that consolidated gearing is maintained at 37.6% on a pro forma basis.
On a pro forma basis, the acquisition of the 30% interest in the property is estimated to increase DPU by 0.2% on a stand-alone basis. Combined with the recent acquisition of the 70% interest in the property in November 2025, DPU accretion is estimated at 2.1% on a pro forma basis based on the acquisition of 100% interest in PLQ Mall.
Upon completion of the transaction, Lendlease REIT will own 100% of PLQ Mall, increasing its total asset value to $4.2 billion with 90% of the portfolio value in Singapore.
"This reflects the continued execution of Lendlease REIT’s Singapore-focused growth strategy, enhancing diversification and income stability," says the REIT.
According to the REIT, following the acquisition, it will be able to refinance existing borrowings at the asset level, unlocking potential annual savings in all-in debt costs of approximately $2 million.
"By securing 100% ownership of PLQ Mall, we gain full management and operational control enabling us to shape the asset’s long‑term performance and unlock value for our unitholders," says Guy Cawthra, CEO of the manager.
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"100% ownership also enables us to fully refinance in place borrowings, which is expected to result in meaningful interest savings," he adds.
Lendlease Global REIT units closed at 60 cents on Feb 24, down 0.83%.
