313@somerset owner Lendlease is including the mall in its Singapore Reit IPO worth S$1.56 billion

You can now own a small piece of Orchard Road.
Facebook/313@somerset
  • A new Reit by developer Lendlease will IPO on Sept 25.

  • It is expected to list on the Singapore stock exchange on Oct 2.

  • Its portfolio contains two properties: shopping mall 313@somerset, and Sky Complex, an Italian office building.

  • According to Bloomberg, the IPO is Singapore’s third largest.

Lendlease – the Australian developer behind malls like Parkway Parade, Jem and PLQ – has applied to list a real estate investment trust (Reit) with a total capitalisation of S$1.56 billion (US$1.13 billion) on the Singapore Exchange, it said in a preliminary prospectus filed on Monday (Sept 16).

It is offering 387 million units of the Reit at 88 cents each.

Buying the Reit means investors are backing 313@somerset – a 99-year leasehold mall on Orchard Road – and Sky Complex, a group of three freehold office buildings in Milan.

The two properties have a combined appraised value of S$1.4 billion, Lendlease said in its prospectus.

The Reit is expected to have a distribution per unit (DPU) yield of 5.8 per cent in 2020 and 6.01 per cent in 2021, the company added. DPU yield refers to the payment unitholders receive from properties in the Reit.

The IPO opens at 9pm on Sept 25 and closes 12 noon on Sept 30, Lendlease said. It is expected to list on the SGX at 2pm on Oct 2.

DBS and Citigroup will coordinate the deal.

The Reit already has 13 cornerstone investors – including DBS itself, asset manager BlackRock, and Temasek subsidiary Fullerton Fund Management – which will collectively take up 454 million units.

Lendlease itself plans to take up 318 million units – about 27 per cent of the Reit’s total.

According to Bloomberg, Lendlease’s IPO is the third biggest in Singapore, following Eagle Hospitality Trust’s US$566 million listing in May and Prime US Reit’s US$612 million listing in July.

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