Lendlease Global Commercial Reit (LReit) plans to acquire the remaining interests in Jem Mall, of which it currently indirectly holds a 31.8 per cent stake, for SG$2.079 billion (US$1.544 billion).
Expected to be completed by May 15, the acquisition would allow LReit to have direct ownership and full control over Jem, at the same time, enjoy tax transparency which it currently does not benefit from. The deal will boost LReit’s total portfolio in terms of net lettable area by 70 per cent, to approximately 2.2 million sqft.
The enlarged portfolio is also expected to uplift its FY2021 net property income to SG$147.8 million from SG$56.9 million resulting in a FY2021 net property income yield of 4.2 per cent.
“The acquisition of Jem is a natural transition for us as we recognise its benefits and resiliency throughout the pandemic,” said Kelvin Chow, CEO of Lendlease Global Commercial Trust Management.
“The suburban retail market continues to perform well, and we believe that the Jurong region and its upcoming development plans will provide a great catchment for Jem.”
Jem Mall currently has a committed occupancy of 100 per cent, with top tenants including Ikea, FairPrice Xtra, and Don Don Donki.
