“The proposed acquisition of Jem will reduce asset concentration risk, with the single largest asset segment representing 46.8% of the enlarged portfolio’s aggregate value, as compared to 55.4% before the acquisition. It will also increase LREIT’s exposure to the resilient suburban retail sector from 16.3% to 46.8% post-acquisition, and increase exposure to non-discretionary trades from approximately 52% to approximately 59% by gross rental income (GRI),” says the REIT manager in a statement on Feb 14.
The manager of Lendlease Global Commercial REIT (LREIT) has proposed to acquire the remaining interest it does not own in Jem, as well as the proposed acquisition of a 13.05% stake in Lendlease Asian Retail Investment Fund 3 Limited (ARIF3) on Feb 14.
Upon the completion of the proposed acquisition, LREIT will own a direct 100% stake in Jem, increasing the REIT’s exposure to the resilient suburban retail sector.
