Sydney-based Lendlease Group has lodged a prospectus to list a new REIT (real estate investment trust), termed as Lendlease Global Commercial REIT on the Singapore Exchange’s (SGX) main board and raise gross proceeds of around S$1.03 billion. The amount raised will pay for the costs of the IPO, the acquisition of the properties and working capital.
About 387.5 units at S$0.88 each of the new REIT will be offered under the initial public offering.
The portfolio which has an appraised value of about S$1.41 billion, consist of a retail mall in Singapore, and an office property which is made up of three office buildings in Milan, Italy.
According to reports, the Lendlease’s REIT, which is to be listed on the SGX has a projected net property income of S$47.9 million for 2020 and S$65.8 million for 2021. Similarly, projected distributable income is forecast at S$44.9 million for 2020 and S$62.7 million for 2021.
Through a concurrent cornerstone offering, cornerstone investors will subscribe for a total of 453.8 million units for about S$399.3 million. While Landlease, through a subsidiary, will subscribe for 318.1 million units for a total of about S$280 million.
DBS Bank and Citigroup Global Markets Singapore will act as joint global coordinators, bookrunners, as well as underwriters.
While the public offer opens on Sept 25 at 9 pm and closes on Sept 30 at 12 pm, the Lendlease’s REIT will list on the SGX on Oct 2.
Lendlease Group last month reported a 41.1 percent drop in annual profit. According to the company, a poor performance from its engineering and services business led to the profit drop.
Earlier this month, Lendlease has landed a contract for the development of the Western Sydney airport at Badgerys Creek.