Recently, the REIT IPO that did not quite take off was GLP’s logistics REIT with Chinese assets. The book was two-thirds covered by cornerstones and anchors ahead of a potential IPO. That may not have ensured a good post-IPO performance, some market watchers have said, while others pointed out that the demand is an indication of strength. Whatever the case, the IPO is likely to be postponed for some weeks because of market volatility.
On the other hand, Lendlease Global Commercial REIT’s (LREIT) placement was 3.3 times subscribed, with strong demand from long-only institutional investors and real estate specialist funds, which accounted for more than 80% of the total proceeds.
On Feb 14, LREIT’s manager announced the proposed acquisition of the remaining stake in Jem it did not own, based on an agreed value of $2.079 billion. At that time, LREIT’s manager had indicated that the accretion to distribution per unit (DPU) would be as high as 10% depending on the equity fund raising (EFR) plan.