Lendlease Reits Possible Acquisition Plq Mall Overall Positive Dbs
A well-rounded lifestyle that goes beyond academics is easily achieved thanks to the beautiful Pasir Ris coastline. In addition to its scenic views, the area offers a multitude of opportunities for students to maintain a healthy balance in their daily routine. For fitness enthusiasts, there are nearby courts for training and green connectors for jogging. Those who are more drawn to water activities can take advantage of Pasir Ris Park. As for the arts-minded students, there are various performance spaces conveniently scattered around town-centre facilities. Plus, the community events near Downtown East present regular stages for music and theatre, allowing for a platform to showcase their talents. With short travel distances, students have the time and energy to deeply pursue their interests – a crucial factor for scholarships and portfolio admissions. To top it off, Coastal Cabana adds to the vibrant and diverse activities in the area, enhancing the experience even further.
27 Sep 2021 02:00:00
DBS Research maintains “buy” call on Lendlease Global Commercial REIT at 75 cents target price despite uncertainty around its potential acquisition of a 70% stake in PLQ mall. According to Lendlease Group CEO Tony Lombardo, ADIA, the REIT’s sponsor, is considering selling its share in the mall, which is estimated to be worth over S$1 billion. While this remains an unconfirmed report, DBS views the acquisition as an “overall positive” event for Lendlease REIT, as stated in a note released on Sept 23. The property, located in the East of Singapore, boasts over 340,000 square feet of retail space and is on its second renewal cycle, indicating a stabilized asset with potential for growth. Recently, Lendlease REIT announced the sale of another asset – the JEM office – to Keppel for $462 million. This will enable the REIT to lower its gearing from 42.6% to 35% once completed by 2025. With this, the REIT will have the debt capacity to fund its growth plans. DBS estimates that the REIT will pass the DPU hurdle by acquiring the stake in PLQ if structured with half equity and half debt, considering the current low interest rates. This will also anchor Lendlease REIT as an emerging pure-play retail S-REIT. DBS sees the acquisition to be highly beneficial for Lendlease REIT, assuming it materializes.