The private placement of Lendlease Global Commercial REIT (LREIT) has closed with its private placement tranche 3.3 times subscribed.
The full upsize option of $75 million was exercised. This means a total of 551.7 million new units will be issued under the private placement, raising the total gross proceeds to $400 million.
The new units were sold at 72.5 cents each.
According to the REIT manager, the private placement drew “strong demand” from long-only institutional investors and real estate specialist funds, which account for more than 80% of the total proceeds.
“We are delighted with the excellent outcome of this private placement and thank all our unitholders and investors for their strong support and confidence in us. This is an important leap for us in delivering steady growing distribution per unit (DPU) and LREIT’s growth strategy," says Kelvin Chow, CEO of the manager.
Units in Lendlease last traded at 79.5 cents before its trading halt on March 22.
