Lendlease REIT To Acquire 70 Pct Stake In PLQ Mall, Expanding Singapore Suburban Retail Portfolio

KUALA LUMPUR, Nov 5 (Bernama) -- Lendlease Global Commercial REIT (Lendlease REIT) is set to acquire a 70 per cent indirect interest in PLQ Mall in Singapore, reinforcing its strategy to grow its suburban retail footprint and deliver steady, recurring income for unitholders.

According to Lendlease REIT in a statement, the acquisition will be made through the purchase of 70 per cent of the issued units in PLQM Trust, which owns the mall, along with a 70 per cent stake in the trustee-manager of the trust.

Upon completion, Lendlease REIT’s total asset value is expected to increase to SG$3.9 billion, with Singapore assets comprising 89 per cent of the portfolio. (SG$1 = RM3.20)

The addition of PLQ Mall will deepen the REIT’s exposure to essential services and suburban retail, with the latter rising to 62.7 per cent of the portfolio. The retail trade mix is also expected to be more diversified, reducing tenant concentration risk and supporting resilient income performance.

“This acquisition marks a strategic step forward in strengthening our resilient suburban retail portfolio in Singapore.

“It offers immediate DPU accretion for unitholders at an attractive entry valuation, while keeping gearing at around 38 per cent and maintaining financial discipline,” said Lendlease Global Commercial Trust Management Pte Ltd chief executive officer, Guy Cawthra.

The agreed property value of the mall is SG$885.0 million, about 2.1 per cent below its appraised value. Based on the agreed valuation, the property reflects a net property income yield of 4.5 per cent.

The total acquisition cost of SG$246.8 million will be funded through the private placement launched on Nov 5, amounting to no less than SG$270.0 million. The transaction does not require unitholder approval under the Singapore Exchange Listing Manual.

The deal underscores Lendlease REIT’s ongoing pivot toward high-performing Singapore retail assets with strong local demand fundamentals and stable long-term cash flows.

-- BERNAMA