Singapore Property Analyst

Anni Kum

Thematic (Sector/Industry)

Australia Equity real estate investment trusts (reits) / Thematic (Sector/Industry)

Australia's <a href="https://www.smartkarma.com/entities/lend-lease-group" target="_blank" data-smartkarma-citation="entities:11248:1" rel="noopener">Lend Lease (LLC AU)</a> could be next to list its REIT in Singapore, according to news reports. To be named Lendlease Global Commercial REIT, the total asset value of the IPO could amount to S$1.4bn, comprising two known assets - 313@Somerset<a href="mailto:313@Somerset" target="_blank" rel="noopener"></a> in Singapore and a Grade A office-retail property in Milan, Italy. The listing market capitalization is said to be around S$1bn.Our initial thoughts on this anticipated IPO are that its asset base is small and its portfolio lacks diversity, though the portfolio statistics appear defensive.  The REIT is anchored on 313@Somerset<a href="mailto:313@Somerset," target="_blank" rel="noopener">,</a> a property that local investors are familiar with. However, there are concerns on the weak outlook for retail malls along the Orchard Road shopping belt and the political and economic crisis in Italy. Based on the estimated debt headroom, there is also a slight hint of a possible major rights issue in future for the acquisition of pipeline assets such as JEM and Parkway Parade. With the target launch of the IPO being in mid-September, LendLease could be lodging the preliminary IPO prospectus very soon. We will then have more information to do further evaluation on the REIT. LendLease will also be announcing its 2019 full year results this morning and there could be more updates on the IPO.

Australia's Lend Lease (LLC AU) could be next to list its REIT in Singapore, according to news reports. To be named Lendlease Global Commercial REIT, the total asset value of the IPO could amount to S$1.4bn, comprising two known assets - 313@Somerset in Singapore and a Grade A office-retail property in Milan, Italy. The listing market capitalization is said to be around S$1bn.Our initial thoughts on this anticipated IPO are that its asset base is small and its portfolio lacks diversity, though the portfolio statistics appear defensive.  The REIT is anchored on 313@Somerset, a property that local investors are familiar with. However, there are concerns on the weak outlook for retail malls along the Orchard Road shopping belt and the political and economic crisis in Italy. Based on the estimated debt headroom, there is also a slight hint of a possible major rights issue in future for the acquisition of pipeline assets such as JEM and Parkway Parade. With the target launch of the IPO being in mid-September, LendLease could be lodging the preliminary IPO prospectus very soon. We will then have more information to do further evaluation on the REIT. LendLease will also be announcing its 2019 full year results this morning and there could be more updates on the IPO.

Singapore REIT: Chasing the Next Global REIT IPO