Lendlease Reit raises S$280 million in private placement
The units are priced at S$0.6020 apiece
[SINGAPORE] The manager of Lendlease Global Commercial Real Estate Investment Trust (Reit) on Thursday (Nov 6) announced the completion of a private placement of around S$280 million, up from the initial S$270 million.
It was about three times covered with strong participation from a quality mix of new and existing unit holders, long-only funds, real estate specialists, private wealth and multi-strategy investors.
Due to the strong interest, the placement size rose by around S$10 million, based on a company statement.
The units from the private placement are issued at $0.6020 apiece, representing a 3.7 per cent discount from adjusted volume-weighted average price of S$0.6253 per unit.
According to the manager, the gross proceeds from the private placement will be substantially used to finance the acquisition of the 70 per cent interest in Paya Lebar Quarter (PLQ) mall.
The agreed property value of PLQ Mall is S$885 million, at a 2.1 per cent or S$19 million discount to the appraised value by Knight Frank.
On Wednesday, the manager of the Reit said the deal is mainly made up of a total equity consideration of S$234.3 million. The acquisition fee payable to the manager is around S$6.2 million, and other acquisition-related fees and expenses are valued at around S$6.3 million.
The new units of the private placement are expected to be issued on or around Nov 14, 2025.
Lendlease Reit on Thursday morning called to lift its trading halt, which was put in place on Wednesday. Its units closed on Tuesday 2.3 per cent or S$0.015 down at S$0.635.
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