Lendlease’s REIT seeks to raise up to $539m in Singapore IPO

Photo: Lendlease website

Lendlease Global Commercial REIT, part of Australia’s Lendlease Group, is planning to raise as much as S$740 million ($539 million) in what would be Singapore’s third-largest initial public offering this year.

The real-estate investment trust aims to sell 841.3 million units at S$0.88 each, according to a preliminary prospectus filed Monday. The offer price represents a forecast annualized yield of 5.8% for the 2020 fiscal year and 6.01% for 2021, the company said in the prospectus. Lendlease will start taking investor orders as soon as Tuesday, said people familiar with the matter, asking not to be identified as the information is private.

Lendlease has attracted 13 cornerstones including BlackRock Inc., DBS Group Holdings Ltd., Lion Global Investors Ltd. and Temasek Holdings Pte.’s Fullerton Fund Management, which combined will take up 453.8 million shares, according to the prospectus.

Trusts have been taking advantage of high stock prices to conduct IPOs and additional share sales, while investors are shopping for yield in a low interest rate environment. Companies have raised $1.67 billion in Singapore IPOs this year, up 11% year-on-year, with REITs accounting for the bulk of deal value, according to data compiled by Bloomberg.

At $539 million, Lendlease’s IPO would be Singapore’s third-largest, after Prime U.S. REIT’s $612 million listing and Eagle Hospitality Trust’s $566 million offering, according to data compiled by Bloomberg.

IPO activity is picking up across Southeast Asia, with Asset World Corp. on a path for a share sale in Thailand valued at as much as $1.6 billion and AllHome Corp. taking orders for a $347 million listing in the Philippines.

Lendlease’s Singapore REIT is backed by a leasehold interest in a retail property in Singapore and a freehold office property in Milan, Italy, its prospectus shows. DBS and Citigroup Inc. are arranging the deal.

Bloomberg

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.