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Lendlease Global Reit IPO ends, public offering 14.5x subscribed

THE Lendlease Global Commercial Reit's (real estate investment trust) initial public offering (IPO) has ended with its public offering 14.5 times subscribed, the Reit's manager announced on Tuesday night.

Its units are expected to start trading on the Singapore Exchange's Mainboard at 2pm on Oct 2.

Lendlease had offered 387.5 million units at S$0.88 each. Of this, 22.7 million units were offered to the public, with 13,640 valid applications for 330.4 million units received. The subscription rate of 14.5 times was the highest for a Singapore Reit in the last five years, said the manager.

Indications of interest received for the placement tranche of 364.7 million units translated to a subscription rate of 9.9 times, with 13 million reserved units fully allocated.

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Separately, 13 cornerstone investors have also subscribed for a total of 453.8 million units.

A total of 1.17 billion units were issued, raising gross proceeds of S$1.03 billion.

Based on the offer price of S$0.88 per unit, Lendlease Global Reit has a distribution yield of 5.8 per cent for the forecast year 2020 and an expected distribution yield growth of 3.6 per cent to 6 per cent projected for 2021.