Lendlease Global Commercial REIT prices IPO at $0.88 per unit

It seeks to raise up to $1.03b.

Lendlease Global Commercial REIT is seeking to raise up to $1.03b through the sale of more than 1.16 billion units at an offering price of $0.88 per unit, the company announced.

Of the total units to be offered, 364.74 million will be offered via international placement to investors in Singapore, 13 million will be reserved for subscription by the directors, management, employees and business associates of Lendlease Group and its subsidiaries, and more than 22.72 million units will be made available to the Singapore public.

It offers a distribution yield of 5.8% for FY2020 and 6.0% for PY2021.

Trustee Lendlease SREIT has entered into a separate subscription agreement to subscribe for more than of 318 million units at the offering price conditional upon certain terms

Additionally, separate from the offering, each of the firm’s cornerstone investors has entered into a separate subscription agreement to subscribe for more than 453.78 million units at the offering price subject to certain conditions. These include AEW Asia, Asdew Acquisitions, BlackRock, Inc., DBS Bank (on behalf of certain wealth management clients), DBS Vickers Securities (on behalf of certain corporate clients), Fullerton Fund Management Company., Lion Global Investors Limited, Moon Capital Partners Master Fund and Moon Capital Performance Plus Master Fund, Nikko Asset Management Asia Limited, Principal Asset Management, Soon Lee Land, The Segantii Asia-Pacific Equity Multi-Strategy Fund and TMB Asset Management.

The REIT’s initial portfolio comprises leasehold and freehold retail and office properties with an appraised value of $1.4b and a net lettable area (NLA) of 1.3 million sqft. These include retail property 313@somerset which is located in Orchard Road, and Sky Complex, a Grade-A office property in Milan comprising three commercial office buildings.

Lendlease Global REIT is backed by Lendlease Corporation Limited, which in turn is part of the Australian multinational corporation Lendlease Group, which has a global development pipeline value approaching $93.4b (A$100b) comprising activities across urbanisation, communities, retirement living and infrastructure development, and is listed on the Australian Securities Exchange (ASX).

The IPO opens at 9PM on 25 September and will close at 12NN on 30 September.