Following stronger than expected demand, Lendlease Global Commercial REIT has raised its perpetual securities offering to $200 million from the initial $150 million.
The issue, which has been priced at 5.25% a year, was 5.3 times subscribed.
“Following the demand that was seen in the recently concluded private placement, we are immensely pleased with the outcome of the perpetual securities issuance,” says Kelvin Chow, CEO of LREIT’s manager.
On March 23, LREIT had announced that a private placement was 3.3 times subscribed and the initial placement size of $325 million was increased to $400 million.
“The oversubscription in both fundraising transactions is proof of investors’ confidence in us,” he adds.
According to LREIT, the first reset of the distribution rate of the perps will be on April 11 2025 and the subsequent resets to occur every three years thereafter.
See also: Changes in ICR, leverage to come into effect immediately, with additional disclosures in March
Proceeds from this tranche of perps will be used to refinance existing borrowings, finance potential acquisition and investment opportunities, including the proposed acquisition of the remaining interests in Jem.
LREIT on Feb 14 announced plans to acquire the remaining interest in Jem, a key property in Jurong East for just over $2.08 billion.
LREIT closed April 4 at 79 cents, up 1.95% for the day but down 9.77% year to date.
