Lendlease Global Commercial REIT Achieves Full Ownership of PLQ Mall with 30% Acquisition

Strategic Move to Strengthen Singapore Portfolio, Lower Debt Costs, and Drive DPU Growth

Date: 25 February 2026
Location: Singapore

Key Points of the Announcement

• Lendlease Global Commercial REIT (Lendlease REIT) announced the acquisition of the remaining 30% indirect interest in PLQ Mall for S\$100.8 million, resulting in full (100%) ownership of the asset.
• This acquisition is financed via a preferential offering to raise gross proceeds of approximately S\$196.6 million.
• The agreed property value for PLQ Mall (100% basis) is S\$885 million, reflecting a 2.2% discount to the appraised value of S\$905 million and an attractive NPI yield of 4.5%.
• The transaction is expected to be DPU accretive, with a projected increase in distribution per unit (DPU) of 2.1% on a combined basis (70% + 30% interest), while maintaining healthy aggregate leverage of approximately 38%.
• PLQ Mall is a prime, best-in-class suburban asset with direct underground access to dual MRT lines, high committed occupancy (~100%), and a 3-year tenant sales CAGR of 3.3%.
• The acquisition further increases Lendlease REIT’s Singapore exposure to around 90%, strengthening portfolio resilience and income stability.
• Greater management and operational control from full ownership enables S\$2 million per annum in potential savings on all-in debt costs through refinancing and allows for targeted asset enhancement initiatives.
• PLQ Mall is well positioned to capture growth from new residential projects, limited retail supply, and favourable demographic trends in the Paya Lebar precinct.

Details of the Acquisition and Asset

• Net Lettable Area (NLA): 317,350 sqft
• Independent Valuations (As at 31 January 2026): S\$904 million (Knight Frank), S\$906 million (CBRE)
• Land Tenure: Leasehold of 99 years from 2015 (88 years remaining)
• Purchase Consideration for 30% Interest: S\$100.8 million
• Funding: Via net proceeds from the preferential offering
• Occupancy Rate: ~100%
• Top 10 Tenants’ Contribution to GRI: ~29%
• Location: Direct connection to Paya Lebar MRT (East-West and Circle Lines) and major expressways

Strategic Rationale and Shareholder-Relevant Developments

• Full ownership of PLQ Mall grants Lendlease REIT greater flexibility to implement asset initiatives, optimise tenant mix, and refinance debt at more attractive rates, targeting S\$2 million in annual debt cost savings.
• With the acquisition, Lendlease REIT’s portfolio will be more resilient, with improved tenant diversification and a higher proportion of recurring suburban retail and essential services income.
• The acquisition supports the REIT’s Singapore-focused growth strategy and positions it to benefit from ongoing and future developments in the Paya Lebar precinct, including:
  • New residential supply (projected to increase to ~22,000 homes by 2030)
  • Major infrastructure and cultural projects (e.g., Geylang Serai rejuvenation, Kallang Alive Sports Precinct, new healthcare facilities)
  • Relocation of Paya Lebar Air Base, freeing up land for further development
  • Limited retail supply and tightening vacancy rates, supporting rental growth
• The acquisition follows a series of strategic moves, including the divestment of the Jem office asset for S\$462 million in August 2025, which reduced gearing and unlocked capacity for accretive acquisitions.
• Lendlease REIT has maintained a strong performance, with a 3.1% YoY increase in 1H FY2026 DPU and improved debt metrics (cost of debt at 2.09% p.a., ICR at 1.8 times).
• The Preferential Offering is priced at S\$0.558 per unit, representing a 6% discount to the VWAP of S\$0.5934 per unit on 24 February 2026, which may be attractive for existing unitholders.

Potential Price-Sensitive Information for Shareholders

• The full consolidation of PLQ Mall and expected DPU uplift (+2.1% on a combined basis) are likely to be viewed positively by the market, with potential for share price appreciation.
• Healthy aggregate leverage (~38%) and enhanced financial flexibility reduce risk and enable future growth, which could support investor confidence.
• Ongoing asset enhancement (reconfiguration of 16,000 sqft in 2026) is expected to drive rental uplifts and further income growth.
• Any changes in Singapore’s retail real estate market (vacancy rates, new supply, yields) or macroeconomic environment could impact valuations and income stability.

Timetable and Next Steps

• Last “cum” Preferential Offering date: 3 March 2026
• Units trade ex-Preferential Offering: 4 March 2026
• Record date for eligibility: 5 March 2026
• Opening date for Preferential Offering: 10 March 2026
• Last date for acceptance/application: 18 March 2026
• Listing and trading of new units: 26 March 2026

For further information, shareholders are encouraged to refer to the official announcements and contact Investor Relations at [email protected].

Disclaimer: This article is for informational purposes only and does not constitute investment advice or an offer to buy or sell any securities. All forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially. Investors should review all official documents and seek professional advice before making investment decisions. Past performance is not indicative of future results.

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