Lendlease Reit's S$200m in perpetual securities 5.3 times subscribed

THE first perpetual securities to be issued by a Singapore real estate investment trust (Reit) this year saw strong demand from investors, being subscribed 5.3 times, with orders exceeding S$780 million, the issuing Reit said on Monday (Apr 4).

In a bourse filing, Lendlease Global Commercial Reit said the demand was so robust that the issuance of the securities was upsized to S$200 million from the original target size of S$150 million.

The perpetual securities - a second series for the Reit - were priced at 5.25 per cent per annum on Monday, higher than the 4.2 per cent per annum rate offered when the Reit issued its first series last year.

The issuance, under the Reit's S$1 billion multicurrency debt issuance programme, will bear an initial rate of distribution of 5.25 per cent per annum for the first 3 years.

The first reset of the distribution rate will be on Apr 11, 2025, and subsequent resets will take place every 3 years thereafter.

The Reit's manager said net proceeds from this round of issuance will be used to finance potential acquisition and investment opportunities, including the proposed acquisition of the remaining interests in Jem mall.

They will also be used for the refinancing of existing borrowings, as well as general working capital and capital expenditure requirements and the general corporate purposes of the group, it added.

DBS and OCBC are the joint global coordinators and joint bookrunners, while UOB is the joint bookrunner for the offering of this series of perpetual securities.

Units of Lendlease Reit JYEU closed up 2 per cent at S$0.785 before the news on Monday.