Key Points from the Announcement
- Issue of New Units: Lendlease Global Commercial REIT (“Lendlease REIT”) has announced the successful issuance of 465,117,000 new units via a private placement.
- Issue Price: The new units are issued at an attractive price of S\$0.602 per unit, raising gross proceeds of no less than S\$270.0 million.
- Trading Commencement: These newly issued units will begin trading on the Main Board of the Singapore Exchange (SGX-ST) at 9:00 a.m. on the day of the announcement.
- Total Units Outstanding: With this placement, the total number of units in issue for Lendlease REIT increases substantially to 2,961,010,783 units.
- Eligibility for Distribution: The new units rank pari passu with existing units, except they are not entitled to the Advanced Distribution declared prior to the placement.
- Geographical Restrictions: The placement is not for distribution in or into the United States, European Economic Area, United Kingdom (except eligible UK investors), Canada, Malaysia, Japan, or Australia. Units are not registered under the U.S. Securities Act and cannot be offered in the U.S. or other restricted jurisdictions.
Important Considerations for Shareholders
- Potential Share Price Impact: The issuance of a significant number of new units increases the total equity base, which may result in dilution of existing unitholders’ interests. Investors should monitor market reactions as the new units commence trading.
- Advanced Distribution Exclusion: Holders of the new units from this private placement will not be entitled to the Advanced Distribution. This is a key point for income-focused investors.
- Investment Risks: The announcement reiterated that the value of REIT units and income derived from them can fluctuate. Units are not guaranteed by the manager or its affiliates, and are subject to investment risks, including possible loss of principal invested.
- Trading and Liquidity: Investors cannot redeem units directly with the manager; all dealings must occur through trading on the SGX-ST. Listing does not guarantee liquidity.
- Forward-Looking Statements: The announcement contains forward-looking statements subject to various risks, including economic conditions, interest rates, capital availability, property rental income, operating costs, and regulatory changes.
- Regulatory Notices: The new units are prescribed capital market products and Excluded Investment Products under Singapore regulations. This may affect their suitability for certain investors.
Details of the Private Placement
Lendlease Global Commercial Trust Management Pte. Ltd. (the manager of Lendlease REIT) confirmed the private placement was launched to raise gross proceeds of no less than S\$270 million. The placement was completed with 465,117,000 new units issued at S\$0.602 per unit. These units will be fungible with existing units, except for the exclusion from the Advanced Distribution.
The successful completion of the placement increases the REIT’s total issued units to nearly 3 billion, potentially enhancing financial flexibility and supporting future growth initiatives. However, shareholders should remain vigilant regarding possible dilution and market activity following the listing of the new units.
The placement is strictly not available in certain jurisdictions, including the United States and others listed above, in compliance with international securities laws. There will be no public offering in these regions, and the securities are not registered under the U.S. Securities Act.
Outlook and Caution
While this capital raising can support future investments or strengthen the REIT’s balance sheet, the actual impact on distributions, NAV per unit, and share price will depend on the subsequent deployment of funds and market conditions. Investors should consider the potential dilution and monitor future management updates regarding the use of proceeds.
Disclaimer
This article is for informational purposes only and does not constitute an offer or solicitation to buy or sell any securities. The information above is based on publicly available announcements from Lendlease Global Commercial REIT and is not investment advice. Past performance is not indicative of future results. Investors should consult their financial advisors before making any investment decisions. This article has not been reviewed by the Monetary Authority of Singapore.
View Lendlease Reit Historical chart here
