SINGAPORE (Sept 16): Australia-listed international property and infrastructure group Lendlease Global has lodged a prospectus to list Lendlease Global Commercial REIT on the Mainboard of the Singapore Exchange.

The manager aims to raise a total of approximately $1 billion in gross proceeds from the IPO as well as a separate offering to cornerstone investors and a separate subscription by Lendlease SREIT, the trustee of an indirectly wholly-owned sub-trust of Lendlease Trust.

The initial public offering will see some 387.5 million units of Lendlease Global REIT up for grabs at an offering price of 88 cents apiece.

This will comprise an international placement and a placement tranche that will be open to institutional and retail investors in Singapore.

In addition, separate from the offering, cornerstone investors will subscribe to some 453.8 million units at the offering price.

At the same time, Lendlease SREIT has also separately entered into an agreement to subscribe to 318.1 million units of Lendlease Global REIT at the offering price.

The IPO portfolio will comprise two properties: 313 @ Somerset, a retail property on Singapore’s Orchard Road shopping belt, and Sky Complex, a freehold office property located in Milan, Italy.

See: [email protected] sold to upcoming Lendlease Global Commercial REIT for just over $1 bil

The IPO Portfolio has a weighted average lease expiry (WALE) of 10.4 years by leased net lettable area (NLA) and a committed occupancy rate of 99.9% as at June 30, 2019.

As at end July, the IPO portfolio has an appraised value of $1.4 billion.

The manager says Lendlease Global REIT may seek growth opportunities from the sponsor’s pipeline and third party acquisitions.

The Lendlease Group has a portfolio of 21 urbanisation projects across 10 gateway cities, including Barangaroo South in Sydney, Australia; Paya Lebar Quarter in Singapore; and The Exchange TRX in Kuala Lumpur, Malaysia.

“Lendlease Global REIT should benefit from the sponsor’s extensive experience and track record in managing retail properties and building tenant relationships as it builds its portfolio of assets under management,” the manager says in the preliminary prospectus.

The listing of Lendlease Global REIT comes on the heels of three US REITs – ARA US Hospitality Trust, Eagle Hospitality Trust, and Prime US REIT – which recently made their debuts on the SGX.

See: Lendlease a step closer to listing of mall REIT on SGX: reports

The public offer will open at 9pm on Sept 25 and close at 12pm on Sept 30, with the REIT expected to list on Oct 2.

The minimum initial subscription for applications is 1,000 units.

DBS is the sole financial advisor and sole issue manager for the offering, and will also be joint global coordinator, bookrunner and underwriter together with Citigroup Global Markets Singapore.