Australia’s Lendlease Global seeks to list Reit on SGX to raise $1.03b

SINGAPORE – Sydney-headquartered Lendlease Global has lodged a prospectus to list a new Reit (real estate investment trust), Lendlease Global Commercial Reit, on the Singapore Exchange's (SGX) main board.

About 387.5 million units at $0.88 per unit will be offered under the initial public offering (IPO) and a placement tranche. The Reit's manager, Lendlease Global Commercial Trust Management Pte Ltd, intends to raise gross proceeds of about $1.03 billion, which will pay for the costs of the IPO, the acquisition of the properties and working capital.

The Reit will initially consist of leasehold retail mall 313@somerset in Singapore and freehold office property Sky Complex, which comprises three office buildings in Milan, Italy. The Reit's portfolio has an appraised value of about $1.41 billion.

Based on the Reit's unaudited pro forma balance sheet, net asset value per unit as at the proposed listing date will be $0.8134. Net property income is projected at $47.9 million for 2020, and $65.8 million for 2021.

Projected distributable income is forecast at $44.9 million for 2020 and $62.7 million for 2021. The Reit's distribution per unit is is forecast to be 3.82 cents with distribution yield at 5.8 per cent for 2020.

The public offer opens on Sept 25 at 9pm and closes on Sept 30 at 12pm, with the Reit expected to list on Oct 2. The minimum initial subscription for applications is 1,000 units. Placement tranche units are offered through an international placement including Singapore and excluding the US.

DBS Bank and Citigroup Global Markets Singapore Pte Ltd are the joint global coordinators, bookrunners and underwriters.

There will be a concurrent cornerstone offering with a planned IPO made by cornerstone investors AEW Asia Pte Ltd, Asdew Acquisitions Pte Ltd, BlackRock Inc, DBS Bank Ltd, DBS Vickers Securities (Singapore) Pte Ltd, Fullerton Fund Management Company Ltd, Lion Global Investors Limited, Moon Capital Management LP, Nikko Asset Management Asia Limited, Principal Asset Management (S) Pte Ltd (formerly known as CIMB-Principal Asset Management), Soon Lee Land Pte Ltd, The Segantii Asia-Pacific Equity Multi-Strategy Fund and TMB Asset Management Co Ltd.

They will subscribe for about 453.8 million units at the offer price, for a total of about $399.3 million.

Separately, Lendlease SREIT Pty Limited, in its capacity as trustee of LLT Sub-Trust, an indirectly wholly owned sub-trust of Lendlease Trust,

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