CGS-CIMB Research analysts Eing Kar Mei and Lock Mun Yee believe an acquisition may be on the cards for Lendlease Global Commercial REIT (LREIT) after the REIT issued its inaugural perpetual securities of $200 million.

The analysts note that the perpetual securities were priced at 4.2% and attracted strong demand, enabling the REIT to upsize the transaction from $150 million to $200 million at a tightened price from its initial guidance of 4.35%.

“The issuance of perp does not come as a total surprise given the relatively higher cost of equity of LREIT, which makes accretive acquisitions harder,” they highlight in a June 1 research note.


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