Lendlease REIT’s 2022 perpetual securities market priced at $200m

This was on the back of strong demand from investors.

With the help of strong investor demand, the perpetual securities market of real estate firm, Lendlease Global Commercial REIT (LREIT), was priced at $200m by RBC Investor Services Trust Singapore Limited, exceeding the firm’s target of $150m.

LREIT declared in its statement that the perpetual securities, the first to be issued by a Singapore real estate investment trust since 2022 began, was subscribed 5.3 times, with orders exceeding $780m. 

The securities will be issued under LREIT’s $1b multicurrency debt issuance programme and will bear an initial rate of distribution of 5.25% per annum for the first three years, LREIT said.

LREIT also said that net proceeds from the perpetual securities will be used for financing existing borrowings, financing of potential acquisition and investment opportunities, LREIT said.

Kelvin Chow, CEO of the manager of LREIT, said the development showed evidence that investors have confidence in their company.

“Following the demand that was seen in the recently concluded private placement, we are immensely pleased with the outcome of the perpetual securities issuance. The oversubscription in both fundraising transactions is proof of investors’ confidence in us and would like to sincerely thank all our stakeholders for their steadfast support and trust in us,” said Chow.