Lendlease Global Commercial REIT Completes S\$462 Million Divestment of Jem Office Component

Key Highlights

• Transaction Completion: Lendlease Global Commercial REIT (Lendlease REIT) has announced the successful completion of the divestment of the office component of Jem for a total consideration of S\$462 million as of 12 November 2025.
• Net Proceeds and Gains: After deducting all associated divestment fees (S\$2.3 million, paid in units) and professional expenses (S\$2.6 million), the net cash proceeds stand at S\$459.4 million. This translates to an estimated net cash gain of S\$8.9 million over the cost of investment.
• Leverage Ratio Impact: The net proceeds will predominantly be used to repay certain loans, resulting in a significant reduction of Lendlease REIT’s aggregate leverage ratio from 42.6% (as at 30 June 2025) to approximately 35% on a pro forma basis.
• Potential Distribution to Unitholders: The Manager is considering distributing the net cash gain on disposal to unitholders, which could enhance investor returns.
• Divestment Fee Structure: The divestment fee of approximately S\$2.3 million will be paid in Lendlease REIT units, with further details to be announced in due course.

Important Information for Shareholders

• Price Sensitive Impact:
  • The reduction in leverage ratio strengthens the REIT’s balance sheet and could improve its credit standing and flexibility for future acquisitions or distributions.
  • The possibility of a special distribution from the net gain may directly benefit unitholders and potentially drive share price appreciation.
  • The divestment enhances the REIT’s financial position and may be viewed positively by the market, especially given the premium achieved over the cost of investment.
• Forward-Looking Statements: Investors should note that the announcement contains forward-looking statements relating to future performance, distributions, and financial strategies. These are subject to market risks, operating conditions, and regulatory changes.
• Trading & Liquidity: Units are listed on SGX-ST, and investors may only trade them on the exchange. There is no guarantee of liquidity in the market.
• Risk Factors: The value of units and derived income may fluctuate. There is no guarantee of returns, and investments are subject to risks including potential loss of principal.
• Manager’s Fees: The divestment fee will be paid in units, which may have minor dilutive effects for existing unitholders. Details regarding the issuance will be announced separately.

Detailed Transaction Summary

Lendlease Global Commercial Trust Management Pte. Ltd., in its capacity as manager of Lendlease REIT, concluded the divestment of the Jem office component on 12 November 2025. The sale, executed under the previously announced Purchase Agreement, brings in S\$462 million to the trust.

After accounting for all related fees and expenses, the trust will realize net cash proceeds of S\$459.4 million. The divestment fee—S\$2.3 million—is to be paid in units, while professional and other fees are approximately S\$2.6 million. The estimated net cash gain over the original investment cost is S\$8.9 million.

The Manager intends to utilize the proceeds mainly for loan repayment, which will reduce Lendlease REIT’s aggregate leverage ratio from 42.6% to approximately 35% on a pro forma basis. This move significantly strengthens the REIT’s financial flexibility and reduces risk exposure.

Additionally, the Manager may distribute the net cash gain from the disposal to unitholders, providing an immediate benefit and potential upside to investors. Further announcements regarding the issuance of divestment fee units will follow in due course.

Forward-Looking Considerations

Investors should be aware that future performance, distributions, and outcomes may differ materially from expectations due to industry dynamics, economic conditions, interest rates, competition, and regulatory changes. This transaction is a strategic move that may have an immediate and positive impact on the share price due to improved financial metrics and potential distributions.

Disclaimer

This article is for informational purposes only and does not constitute an offer or invitation to acquire, purchase, or subscribe for units in Lendlease Global Commercial REIT. Investments are subject to risks, including the possible loss of principal. Past performance is not indicative of future results. Readers should conduct their own due diligence or consult their financial advisor before making investment decisions.

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