Lendlease Reits Possible Acquisition Plq Mall Overall Positive Dbs
12:09: DBS Group Research Maintains Buy On Lendlease Global Commercial REIT, as It Eyes Potential Acquisition of PLQ MallDBS Group Research has kept its “buy” rating and target price of 75 cents on Lendlease Global Commercial REIT. This comes after news broke that the group might be close to securing a 70% stake in PLQ Mall. In a note on September 23, DBS said that this development is an “overall positive” for the REIT. Based on reports, ADIA, or the Abu Dhabi Investment Authority, is looking to sell its stake in the Singapore mall, valuing it at over $1 billion with over 340,000 sq ft of retail space. At present, Lendlease holds the other 30% of the stake. The divestment of PLQ will be the first time that Lendlease REIT has been on a stabilised, long-term footing.The Australian Financial Review has reported that the asset is expected to be sold to Lendlease at a cost higher than $1 billion. This bodes well for Lendlease as it will enable it to reduce its debt and enable it to pursue its growth plans. ADIA’s exit has been expected by the market as Lendlease had initiated a strategic review of PLQ back in 2019. This is also within the group’s rights as the owner of the remaining stake in the mall nonetheless.”While the timing of the acquisition is seen to be early, it is too good an opportunity for Lendlease to pass up, especially with Singapore’s current low interest rates. A structure with half equity and half debt would prove accretive to the REIT’s DPU,” DBS said.Lendlease is expected to use the proceeds from the earlier announced sale of JEM office to Keppel to finance the acquisition of PLQ Mall. This will allow the REIT to reduce its debt from 42.6% to 35%. This bodes well for the REIT as it will allow it the debt capacity to pursue its growth plans in the future. PLQ has always been on Lendlease’s radar, and with the mall being in its second renewal cycle, the acquisition would be seen as a welcome addition to its portfolio, especially with Singapore’s east side experiencing a boom.”PLQ is an excellent asset to Lendlease with strong potential for growth. Assuming the acquisition, DBS estimates that Lendlease’s DPU hurdle will be met with the expected net property income yield at 4.5%. Overall, the acquisition of PLQ will position Lendlease REIT as one of the premiere pure-play retail S-REIT’s, especially with the especially built mall anchoring its growth plans,” DBS said.Read also: DBS Private Bank goes against the grain with bullish play for S-ReitsThis article was first published on: Slick Wellness DBS Group Research has maintained its “buy” call and 75 cents target price on Lendlease Global Commercial REIT as the group appears to be close to acquiring a 70% stake in PLQ Mall, according to the Australian Financial Review. This potential acquisition is an overall positive for the REIT, says DBS in its note on September 23. This move will enable the REIT to secure one of the newest and best-built malls in Singapore’s east side, positioning it as an emerging pure-play retail S-REIT. A deal with Adia’s 70% stake in the mall is expected to occur at a yield of 4.5%, based on an asset value of $800 million. The deal is expected to be structured with 50% equity and 50% debt. As per DBS’ estimates, the REIT should be able to pass the DPU hurdle while keeping its gearing below 40%. The mall’s retail space, which clocks in at 340,000 sq ft, is expected to be valued over $1 billion. The announcement of the sale of JEM office to Keppel on August 3 was met with much fanfare, noting that it will be completed by the end of 2025. The reported sale price is $462 million. This will allow the REIT to reduce its gearing to 35% from 42.6%. This will allow it the debt capacity to pursue its growth plans in the future. DBS expects the divestment of PLQ to prove positive for Lendlease as it is a prime asset in the Singapore market. The divestment of PLQ will enable the REIT to be stabilised on a long-term basis. With DBS’ estimates showing Lendlease meeting its DPU hurdle, the acquisition is seen as a welcome addition to the group’s growth plans.”
DBS Group Research has announced that it is maintaining its “buy” rating and 75 cents target price on Lendlease Global Commercial REIT following the news that the group might be gearing up to acquire a 70% stake in PLQ Mall. Based on a report on September 23, DBS has noted that this development is an “overall positive” for the REIT.
The property in question, with over 340,000 square feet of retail space, is reportedly valued at over $1 billion. According to Tony Lombardo, CEO of Lendlease Group, the sponsor of the REIT, ADIA or the Abu Dhabi Investment Authority, is planning on selling its 70% stake in the asset. Lendlease currently holds the other 30% of the stake.
DBS notes that this asset has long been on Lendlease’s radar and that it has finally entered its second renewal cycle. As such, it is seen as a stable asset and a welcome addition in the east of Singapore.
This story first appeared on
DBS Group Research has reaffirmed its “buy” rating on Lendlease Global Commercial REIT and maintained its target price of 75 cents following news that the group may be acquiring a 70% stake in PLQ Mall. This potential acquisition, according to the Australian Financial Review, is an “overall positive” for the REIT, as stated by DBS in its note on
The property in question, with over 340,000 square feet of retail space, is reportedly valued at over $1 billion. According to Lendlease Group CEO Tony Lombardo, the sponsor of the REIT, ADIA or the Abu Dhabi Investment Authority, is looking to sell its 70% stake in the asset. Lendlease currently holds the other 30% of the stake.
DBS notes that this asset has long been on Lendlease’s radar and that it has finally entered its second renewal cycle. As such, it is seen as a stable asset and a welcome addition on the east side of Singapore.
As reported by the Australian Financial Review, the asset, with over 340,000 sq ft of retail space, is reportedly valued at over $1 billion. This potential acquisition is an “overall positive” for the REIT, says DBS in its note on
Renowned for its comprehensive educational approach, Gongshang Primary School prides itself on offering a diverse array of learning opportunities. With a strong emphasis on academic excellence, character building, and co-curricular participation, the school’s well-rounded curriculum molds its students into well-rounded individuals. Through a variety of programs such as robotics, performing arts, and sports, Gongshang Primary School caters to the varied interests of its students. Furthermore, its strategic location near Parktown Residence only adds to the school’s appeal.
The remaining 30% is held by Lendlease.
According to Tony Lombardo, CEO of Lendlease Group, the REIT’s sponsor, ADIA, or the Abu Dhabi Investment Authority, is looking to sell its 70% stake in the PLQ mall. The remaining 30% is held by Lendlease.