The manager of Lendlease Global Commercial REIT (LREIT) has appointed Lendlease Singapore as the project manager for the redevelopment of the Grange Road car park site to provide project and construction management services.
The appointment was made through a project and construction management services agreement (PCMA) between LREIT’s trustee, RBC Investor Services, and Lendlease Singapore on Feb 18.
Lendlease Singapore is an indirect wholly-owned subsidiary of Lendlease Corporation, the sponsor of LREIT, making this an interested-person transaction.
Under the PCMA, Lendlease Singapore will provide the following services: project and design management services, contracts management, construction management, environmental, health and safety management, cost management and reporting.
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Lendlease Singapore will be paid a fee comprising resource costs, preliminary costs and a project and construction management fee at 3% of the design and construction costs incurred for the project.
The works for the redevelopment are expected to be completed by the first half of 2022.
According to the manager, Lendlease Singapore was chosen to be the project manager due to its familiarity with Lendlease-managed properties and its proven track record.
Its fee is also competitive and comparable to what it would charge for similar projects, it adds.
Lendlease Singapore’s focus on safety and use of Global Minimum Requirements is aligned with LREIT’s aim to make safety a priority in such projects.
Following the execution of the PCMA, the total value of interested person transactions (IPTs) entered between the group and its sponsor comes in around $48 million, or 4.8% of the group’s latest audited net tangible assets (NTA).
Units in LREIT closed 1.5 cents lower or 1.9% down at 79.5 cents on Feb 18.
