Lendlease Global REIT IPO subscribed 14.5x in strong market take-up

The REIT received applications totalling 330.44 units worth $290.8m.

Lendlease Global Commercial REIT received 13,640 applications for a total of 330.44 million units worth $290.8m for its public offer of 22.73 million units to Singapore public, the company announced. The offering was subscribed 14.5 times, which the REIT said is the highest in five years.

The REIT made its debut at the SGX Mainboard for $0.935 apiece on 2 October.

Its placement tranche offered to institutional and other investors in Singapore also posted a subscription rate of 9.9 times, with the 13 million reserved units fully allocated.

Overall, Lendlease’ offering of 387.47 million units received a total subscription of about $3.35b and was 9.8 times subscribed.

At the same time, 13 Cornerstone investors including AEW Asia Pte Ltd, Asdew Acquisitions Pte Ltd, funds and accounts under management by investment management subsidiaries subscribed for an aggregate of 453.78 million units.

A total of 1.17 billion units were issued to raise gross proceeds of about $1.03b. With offering price of $0.88 per unit, the REIT offered a distribution yield of 5.8% in Forecast Year 2020 and expected distribution yield growth of 3.6% in Projection Year 2021.

S-REITs have raised US$1.63b so far in September, data from Bloomberg show.