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Lendlease Global Commercial Reit acquires stake in Jem
LENDLEASE Global Commercial Reit has acquired a stake in Jem shopping mall, through a 5 per cent stake in Lendlease Asian Retail Investment Fund 3 at a purchase consideration of around S$45 million, said the real estate investment trust's (Reit) manager in a bourse filing on Thursday.
Lendlease Asian Retail Investment Fund 3, indirectly holds a 75 per cent interest in Jem. The fund is a private fund managed by Lendlease Investment Management, an indirect wholly owned subsidiary of the sponsor of the Reit, Lendlease Corporation.
The investment will provide Lendlease Reit with pre-emptive rights, which all existing investors have in the fund. This may provide opportunities for the Reit to potentially increase its strategic stake in the fund and indirect interest in Jem over time should other investors divest their interests in the fund, said the manager.
The acquisition was financed through internal resources and debt facilities. The pro forma gearing of Lendlease Reit following the acquisition is 36.9 per cent as at June 30, 2020.
The total estimated cost of the acquisition is approximately S$46.3 million, comprising the purchase consideration of approximately S$45 million, the acquisition fee payable in units in Lendlease Reit to the manager of approximately S$400,000, and the estimated professional and other fees and expenses incurred or to be incurred by the Reit in connection with the acquisition of approximately S$900,000.
Units of Lendlease Reit closed on Thursday at S$0.67, down S$0.01 or 1.5 per cent.