Home Capital Broker's Calls

Potential acquisition on the cards for Lendlease Global Commercial REIT: CGS-CIMB

Atiqah Mokhtar
Atiqah Mokhtar6/3/2021 10:35 AM GMT+08  • 3 min read
Potential acquisition on the cards for Lendlease Global Commercial REIT: CGS-CIMB
CGS-CIMB believes LREIT's recent issuance of $200 mil perpetual securities will be mainly used to fund acquisitions.
Font Resizer
Share to WhatsappShare to FacebookShare to LinkedInMore Share
Scroll to top
Follow us on Facebook and join our Telegram channel for the latest updates.

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.

For more insights on corporate trends...
Sign In or Create an account to access our premium content.
Subscription Entitlements:
Less than $9 per month
Unlimited access to latest and premium articles
3 Simultaneous logins across all devices
Bonus unlimited access to online articles and virtual newspaper on The Edge Malaysia (single login)
Loading next article...
The Edge Singapore
Download The Edge Singapore App
Google playApple store play
Keep updated
Follow our social media
Subscribe to The Edge Singapore
Get credible investing ideas from our in-depth stock analysis, interviews with key executives, corporate movements coverage and their impact on the market.
© 2022 The Edge Publishing Pte Ltd. All rights reserved.