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.