Lendlease Global Commercial REIT Secures Up to S\$150 Million in New Revolving Credit Facilities

Key Highlights

• Lendlease Global Commercial REIT (LREIT) has entered into two uncommitted revolving credit facilities totaling S\$150 million.
• Facility A: Up to S\$50 million through a facility agreement.
• Facility B: Up to S\$100 million through a separate facility letter.
• Both facilities are to be used for general corporate purposes and/or bridge financing for LREIT and its subsidiaries.
• These facilities are in addition to LREIT’s existing debt arrangements, bringing the total amount of facilities potentially affected by certain events to S\$1,709.8 million as of this announcement.
• The facilities are subject to certain conditions and covenants, including change-of-control and manager replacement clauses that could trigger mandatory prepayment or default.

Details of the Facilities

Lendlease Global Commercial Trust Management Pte. Ltd. (the Manager), acting on behalf of LREIT, announced that DBS Trustee Limited (as trustee of LREIT) has entered into a facility agreement for Facility A (S\$50 million) and accepted an offer for Facility B (S\$100 million). Both are uncommitted revolving credit facilities, meaning that their availability is at the discretion of the lenders.

These funds can be drawn down as needed for general corporate purposes or to provide bridge financing, enhancing LREIT’s financial flexibility.

Potentially Price-Sensitive Covenants and Risks

• Mandatory Prepayment Event: The facilities require mandatory prepayment if Lendlease Corporation Limited (the sponsor) ceases to own at least 51% of the issued and fully paid share capital of the Manager, unless all lenders consent in writing. This change-of-control clause is significant; should the sponsor lose control, LREIT may be required to repay up to S\$1,709.8 million in facilities.
• Event of Default: If the Manager resigns or is removed (unless a replacement is appointed), it constitutes an event of default under the facility agreement. Any such managerial change without a replacement could trigger the acceleration of loan repayments.
• Aggregate Exposure: The announcement states that the aggregate amount of facilities potentially affected by the above events is S\$1,709.8 million (converted from Euro where applicable as of 30 September 2025). This amount is substantial relative to LREIT’s balance sheet and could impact liquidity and solvency in the event of a trigger.

As of the announcement date, none of these triggering events have occurred.

Forward-Looking Statements and Investment Considerations

The announcement highlights that it may contain forward-looking statements subject to risks such as economic conditions, interest rate trends, capital costs, competition, changes in property rental income, operating expenses, governmental and public policy changes, and the continued availability of financing. Investors are cautioned not to place undue reliance on these statements, as actual results may differ materially.

Importantly, the Units of LREIT are not guaranteed by the Manager or the Trustee and are subject to investment risks, including potential loss of principal. The Units cannot be redeemed by investors directly with the Manager; trading must occur on the SGX-ST, and there is no guarantee of a liquid market.

Implications for Shareholders

• The entry into significant new credit facilities enhances LREIT’s financial flexibility, which may support growth or provide a buffer in volatile market conditions.
• However, the change-of-control and manager replacement clauses introduce potential refinancing or liquidity risks should relevant events occur, possibly impacting both LREIT’s credit profile and share value.
• The aggregate exposure from all facilities is substantial and could become a material concern if adverse events materialize.

Conclusion

The announcement of these new revolving credit facilities is a material development for LREIT, providing additional funding flexibility but also highlighting key risks that investors should closely monitor. Shareholders should be aware of the specific covenants and their potential impact on LREIT’s financial position and share price, especially in the event of changes in sponsorship or management.

Disclaimer: This article is for informational purposes only and does not constitute investment advice or an offer to buy or sell any securities. Investors should conduct their own due diligence and consult professional advisors before making any investment decisions. The value of LREIT Units and the income derived from them may fall as well as rise, and past performance is not indicative of future results. This article is based on the latest available information as of 11 December 2025.

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