Lendlease Global Commercial REIT’s Singapore portfolio demonstrates strength with positive rental increases for both its retail and office spaces.
SINGAPORE, Feb. 27, 2025 — Lendlease Global Commercial Trust Management Pte. Ltd., the manager of Lendlease Global Commercial REIT (“LREIT”), announces a rental increase of approximately 13% for Jem office, effective from December 3, 2024, for a five-year term.
The Singapore Ministry of National Development (“MND”) fully leases Jem office until 2044, with rent reviews occurring every five years. As of June 30, 2024, MND is LREIT’s top tenant by gross rental income (“GRI”), contributing 11.2% to the portfolio. Following this rental review, MND’s GRI contribution is projected to rise to around 12% on a pro forma basis as of December 31, 2024.
LREIT’s Singapore portfolio, comprising about 90%1 of the total portfolio by valuation, which includes retail malls, has shown strong rental growth. As of December 31, 2024, the retail portfolio had a committed occupancy of 99.9%, a positive rental reversion of 10.7%, and a healthy tenant retention rate of 86.1%.
Mr. Kelvin Chow, CEO of the Manager, stated, “The positive rental increase demonstrates the strong performance of our Singapore retail and office assets. Jem’s location in Jurong Gateway is strategically important, as it’s planned to be Singapore’s second central business district.”
In other news, LREIT has priced S$120 million in 4.75% fixed-rate perpetual securities. The net proceeds will be used to refinance the 5.25% fixed-rate perpetual securities due in April 2025. As of December 31, 2024, LREIT had S$156.1 million in undrawn debt facilities. The focus moving forward will be on leasing Building 3 in Milan, proactive asset management, and optimizing the cost of capital.”
About Lendlease Global Commercial REIT
Lendlease Global Commercial REIT (“LREIT”), listed on October 2, 2019, aims to invest in a diverse portfolio of stable, income-producing real estate assets globally, primarily for retail and/or office use.
The portfolio includes leasehold properties in Singapore—Jem (office and retail) and 313@somerset (retail)—and freehold interests in three Grade A commercial buildings in Milan. These five properties have a total net lettable area of approximately 2.0 million square feet, valued at S$3.68 billion as of June 30, 2024. Other investments include a stake in Parkway Parade (office and retail) and development of a multifunctional event space next to 313@somerset.
Lendlease Global Commercial Trust Management Pte. Ltd., a wholly-owned subsidiary of Lendlease Corporation Limited, manages LREIT. Its main goals are to provide unitholders with consistent distributions, achieve long-term growth in distribution per unit and net asset value per unit, and maintain a sound capital structure.
About the Sponsor – Lendlease Corporation Limited
Lendlease Corporation Limited is a leading Australian integrated real estate group headquartered in Sydney and listed on the Australian Securities Exchange.
Its operations are divided into Investments, Development, and Construction. The synergy of these segments gives it a competitive edge in providing innovative solutions for clients. More information is available at: .
For more information on LREIT, please contact Investor Relations:
Lendlease Global Commercial Trust Management Pte. Ltd.
Ling Bee Lin
Tel: +65 6671 7374
Important Notice
This press release is for informational purposes only and does not represent an offer to purchase or subscribe for any securities of Lendlease Global Commercial REIT (“LREIT”) in Singapore or elsewhere, nor should it be the basis of any contract or commitment.
The value of LREIT units (the “Units”) and their income can fluctuate. Units are not obligations of, deposits in, or guaranteed by Lendlease Global Commercial Trust Management Pte. Ltd. (the “Manager”), DBS Trustee Limited, or their affiliates.
This release may contain forward-looking statements involving risks and uncertainties. Actual results may differ due to various risks, uncertainties, and assumptions, including industry and economic conditions, interest rate trends, cost of capital, competition, rental income levels, operating expenses, and government policy changes, as well as financing availability.
An investment in Units involves risks, including potential loss of principal. Unitholders (“Unitholder”) cannot request redemption while the Units are listed; trading is limited to the Singapore Exchange Securities Trading Limited (“SGX-ST”). Listing on the SGX-ST does not ensure a liquid market.
This press release should not be distributed outside Singapore. Non-compliance may violate United States securities laws or other jurisdictions’ laws.
Past performance is not indicative of future results.
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1 Information as at 31 December 2024.
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