Lendlease REIT Nears Completion Of Jem Office Divestment 

KUALA LUMPUR, Nov 3 (Bernama) -- Lendlease Global Commercial Trust Management Pte Ltd, the manager of Lendlease Global Commercial REIT (Lendlease REIT), announced that the condition precedent for the divestment of the Jem office component has been fulfilled, with completion expected by Nov 12.

Upon completion, the net sales proceeds will primarily be used to repay borrowings, reducing aggregate leverage to about 35 per cent on a pro forma basis and terminating associated hedges. The divestment is expected to generate a disposal gain of approximately SG$8.9 million, which will be distributed to unitholders.(SG$1=RM3.21)

As of Sept 30, 2025, Lendlease REIT’s overall portfolio committed occupancy improved to 95 per cent. Its retail portfolio maintained strong performance with occupancy exceeding 99 per cent, while the Milan office portfolio saw an increase to 88.5 per cent from 81.6 per cent in June 2025, supported by active leasing at Building 3.

In a statement, the manager’s Chief Executive Officer, Guy Cawthra said the portfolio continued to demonstrate resilience during the quarter, underpinned by healthy operational performance and disciplined capital management, adding that the Jem divestment positions Lendlease REIT for resilient growth.

The lease expiry profile remained well-balanced, with 7.9 per cent of net lettable area (NLA) and 11.6 per cent of gross rental income (GRI) due for renewal in fiscal year 2026 (FY2026). The portfolio reflected a weighted average lease expiry (WALE) of about seven years by NLA and 4.8 years by GRI.

The retail portfolio recorded a positive rental reversion of 8.9 per cent as of Sept 30, 2025, while tenant retention stood at 52.2 per cent, mainly due to the exit of Cathay Cineplexes, which has since been replaced by Shaw Theatres. Excluding Cathay Cineplexes, retention would have been 72.9 per cent.

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Visitation rose 7.7 per cent year-on-year (YoY), driven by targeted campaigns and marketing initiatives—particularly at 313@somerset—to boost footfall and international interest along Orchard Road. Tenant sales dipped slightly by 0.8 per cent YoY but remained stable when excluding Cathay Cineplexes’ contribution.

During the quarter, SG$115.5 million of loans were refinanced. As at end-September, gross borrowings totalled SG$1.67 billion, with a weighted average debt maturity of 2.6 years and SG$136.1 million in undrawn facilities. Sustainability-linked financing made up about 93 per cent of total committed debt, with 68 per cent of borrowings hedged to fixed rates and the cost of debt improving to 3.09 per cent per annum.

On Sept 22, Lendlease REIT was included in the iEdge Singapore Next 50 Index, enhancing its visibility and expanding its investor base. Average daily trading volume doubled to around 10 million units, while its unit price rose approximately 14 per cent year-to-date, outperforming the FTSE ST REIT Index by roughly five percentage points.

Lendlease REIT also earned the title of Regional Sector Leader in Retail Asia (Listed) in the 2025 GRESB rankings, marking its sixth consecutive year receiving the recognition. It achieved a five-star rating for its environmental, social and governance (ESG) performance and an “A” score for Public Disclosure, reaffirming its commitment to transparency and sustainability leadership.

-- BERNAMA