Lendlease Global Commercial REIT Secures Around 13 Pct Rental Hike For Jem Office
KUALA LUMPUR, Feb 28 (Bernama) -- Lendlease Global Commercial Trust Management Pte Ltd (Manager), the manager of Lendlease Global Commercial REIT (LREIT), has announced a 13 per cent increase in the base rent for Jem office, effective Dec 3, 2024, as part of its five-year rental review.
The Jem office is fully leased to Singapore’s Ministry of National Development (MND) until 2044, contributing 11.2 per cent to LREIT’s portfolio by gross rental income (GRI) as of June 30, 2024. Following this rental review, GRI contribution from the MND is expected to increase to approximately 12 per cent on a pro forma basis as of Dec 31, 2024.
“Our Singapore retail and office assets continued to perform strongly as demonstrated by the positive rental increase. Jurong Gateway, where Jem is located, is an important location earmarked to be the second central business district in Singapore,” said Chief Executive Officer of the Manager, Kelvin Chow in a statement.
Together with the retail malls, LREIT’s Singapore portfolio which accounts for approximately 90 per cent of the total portfolio by valuation, has delivered good rental growth. As of Dec 31, 2024, its retail portfolio achieved 99.9 per cent committed occupancy with a positive rental reversion of 10.7 per cent and a healthy tenant retention rate of 86.1 per cent.
Separately, LREIT has recently priced SG$120 million 4.75 per cent fixed-rate perpetual securities, which will be used to refinance its 5.25 per cent perpetual securities due in April. (SG$1 = RM3.30)
As of Dec 31, 2024, LREIT has undrawn debt facilities of SG$156.1 million and plans to focus on leasing Building 3 in Milan and optimising capital costs.
-- BERNAMA