Lendlease Reit to take full ownership of PLQ Mall in $116 million deal
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Lendlease Reit had earlier acquited a 70 per cent interest in PLQ Mall in November 2025.
PHTOTO: THE BUSINESS TIMES
SINGAPORE - Lendlease Global Commercial Reit is set to acquire the remaining 30 per cent stake in PLQ Mall for about $116.4 million.
The deal, announced on Feb 25, will grant the real estate investment trust (Reit) full ownership and operational control of the mall in Paya Lebar.
The move follows the Reit’s initial acquisition of a 70 per cent interest in the mall in November 2025.
The acquisition is priced at an agreed property value of $885 million, representing a 2.2 per cent discount to the $905 million average appraised value determined by independent valuers.
By securing the final stake, the Reit’s total portfolio value will climb to $4.2 billion, with Singapore-based assets comprising a dominant 90 per cent of its holdings.
Management expects this shift to bolster “greater resilience and income stability”. The mall maintains a committed occupancy rate of 99.4 per cent.
The transition to 100 per cent ownership allows the Reit to fully refinance existing asset-level borrowings. This move is projected to generate “potential savings in all-in debt costs of approximately $2 million per annum”.
On a pro forma basis, the combined impact of the 100 per cent acquisition is estimated to deliver a 2.1 per cent accretion in distribution per unit.
To fund the purchase and manage its balance sheet, the Reit launched a $196.6 million preferential offering on Feb 25.
The issue price of 55.8 cents per new unit represents a discount of around 6 per cent to the volume-weighted average price of 59.34 cents per unit on the Singapore Exchange.
About $113.8 million raised from the preferential offering will be utilised to fund the total acquisition costs.
The remainder is intended to “reduce debt at Lendlease Reit level to ensure that consolidated gearing is maintained at a prudent level” of 37.6 per cent.
Mr Guy Cawthra, chief executive of the manager, noted that securing full ownership enables the Reit to “gain full management and operational control, enabling us to shape the asset’s long-term performance and unlock value for our unitholders”.
The transaction is expected to be finalised by June 30.
The manager of the Reit requested a trading halt on Feb 25. Units of Lendlease Global Commercial Reit ended 0.5 cent, or 0.8 per cent, lower at 60 cents on Feb 24. THE BUSINESS TIMES
