Lendlease Global Commercial Reit issues S$200m in perpetual securities at 4.2% per annum

LENDLEASE Global Commercial Real Estate Investment Trust (Reit) has issued S$200 million in perpetual securities at 4.20 per cent per annum, for the financing of potential investment opportunities among several other uses.

Lendlease Global Commercial Trust Management, the Reit's manager, in a regulatory filing on Thursday, announced that the issuance under Lendlease Global Commercial Reit's S$1 billion multicurrency debt-issuance programme will bear an initial rate of distribution of 4.20 per cent per annum for the first five years.

The first reset of the distribution rate will be on June 4, 2026; subsequent resets will take place every five years thereafter.

The proceeds will be used for the financing of potential acquisition and investment opportunities as well as for general working capital, capital expenditure requirements and refinancing of existing borrowings.

Following the issuance, Lendlease Global Commercial Reit's aggregate leverage ratio is expected to drop to 31.3 per cent from 35.4 per cent as at March 31.

The perpetual securities were oversubscribed based on the initial target size of S$150 million. Lendlease Global Commercial Reit raised the issuance size to S$200 million and tightened the price to 4.20 per cent from the initial guidance of 4.35 per cent.

DBS and OCBC were the joint lead managers for the offering of the perpetual securities.