Lendlease Global Commercial REIT boosts stake in Jem by 31.8% 

Lendlease plans to acquire a $159.1m stake in Lendlease Jem Partners Fund Limited.

Lendlease Global Commercial REIT (LREIT) will increase its stake in Jem mall by 31.8% through its trustee RBC Investor Services Trust Singapore Limited.

LREIT will acquire a 53% interest in Lendlease Jem Partners Fund Limited (LLJP) from third party vendors for $159.1m and a 5% interest in Lendlease Asian Retail Investment Fund 3  Limited (ARIF3) from Lendlease International Pty Limited for $45m. The Trustee may also acquire up to 19.8% interest in ARIF3 from other third-party investors for $178.2m.

Upon completion of the proposed acquisition, LREIT will hold an effective indirect interest of up to 31.8% in Jem.

Chief executive officer of LREIT’s manager, Lendlease Global Commercial Trust Management Pte. Ltd., Kelvin Chow described the acquisition price as attractive for “a high-quality asset like Jem.”

“Following the acquisition, the enlarged portfolio size of $1.8b will have a diversified asset base and an increased exposure to more resilient suburban retail and decentralised office segments. The single largest asset by aggregate value of the enlarged portfolio would also have decreased from 67.6% to 55.1%. The proposed acquisition will therefore enhance LREIT’s income diversification,” Chow added.