Lendlease Global Commercial REIT raises S$249m in preferential offering

The company noted the offering was oversubscribed by about 1.4 times.

Lendlease Global Commercial REIT (LREIT) reported that it raised S$249m from its preferential offering that was oversubscribed by approximately 1.4 times.

LREIT made an allotment of 34.57 million new units at an issue price of S$0.72 per new unit.

On top of this, LREIT also raised a total of more than S$1.7b to fund the acquisition of Jem.

According to Lendlease, the support from new and existing institutional investors in its recent fundraising activities solidifies its position as a leading S-REIT with strong, and stable cash flows.

LREIT’s private placement was subscribed 3.3 times subscribed and drew strong demand from long-only institutional investors and real estate specialist funds. These accounted for over 80% of the gross proceeds.

The tranche was also upsized to S$400m from S$325m. Moreover, the issuance of perpetual securities also received strong demand from investors where it was upsized to S$200m from the initial S$150m target.

This comes after the issuance attracted more than 5.3 times of orders. This marked the market’s first perpetual securities issuance by an S-REIT in 2022.