Lendlease has sold its 30% interest in a suburban retail complex in Singapore, known as PLQ Mall for S$116m (鈧�78m), valuing the property at S$885m, to the listed Lendlease Global Commercial REIT.
Last November, the REIT bought a 70% holding of the asset from Lendlease鈥檚 joint venture partner, Abu Dhabi Investment Authority, for around S$247m.
鈥淏y securing 100% ownership of PLQ Mall, we gain full management and operational control enabling us to shape the asset鈥檚 long-term performance and unlock value for our unitholders,鈥� said Guy Cawthra, chief executive of the manager. 鈥淥ne hundred percent ownership also enables us to fully refinance in place borrowings, which is expected to result in meaningful savings.鈥�
To finance the acquisition, Lendlease Global Commercial REIT has launched an underwritten non-renounceable preferential offering to raise gross proceeds of approximately S$196.6m, pricing the new units at S$0.558 each.
The REIT said proceeds from the raising would fund the acquisition and reduce debt at the Lendlease REIT level to ensure that consolidated gearing is maintained at a prudent level of 37.6% on a pro forma basis.
It said the acquisition would strengthen Lendlease REIT鈥檚 presence in Singapore with a total portfolio value of S$4.2bn, of which 90% is in Singapore.
Completed in 2019, the mall is part of the four-hectare Paya Lebar Quarter Integrated development comprising retail, office and apartments, valued at S$3.7bn on completion. It is one of the largest urban rejuvenation projects in the city state.
