Kuala lumpur: Lendlease Global Commercial Trust Management Pte Ltd, the manager of Lendlease Global Commercial REIT (Lendlease REIT), has announced that the condition precedent for the divestment of the Jem office component has been fulfilled, with completion expected by November 12. Upon completion, the net sales proceeds will primarily be used to repay borrowings, reducing aggregate leverage to about 35 percent on a pro forma basis and terminating associated hedges.
According to BERNAMA News Agency, the divestment is expected to generate a disposal gain of approximately SG$8.9 million, which will be distributed to unitholders. As of September 30, 2025, Lendlease REIT’s overall portfolio committed occupancy improved to 95 percent. Its retail portfolio maintained strong performance with occupancy exceeding 99 percent, while the Milan office portfolio saw an increase to 88.5 percent from 81.6 percent 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. He added that the Jem divestment positions Lendlease REIT for resilient growth. The lease expiry profile remained well-balanced, with 7.9 percent of net lettable area (NLA) and 11.6 percent 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 percent as of September 30, 2025, while tenant retention stood at 52.2 percent, mainly due to the exit of Cathay Cineplexes, which has since been replaced by Shaw Theatres.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 percent. Visitation rose 7.7 percent 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 percent YoY but remained stable when excluding Cathay Cineplexes’ contribution.
During the quarter, SG$115.5 million of loans were refinanced. As of end-September, gross borrowings totaled 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 percent of total committed debt, with 68 percent of borrowings hedged to fixed rates and the cost of debt improving to 3.09 percent per annum.
On September 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 percent 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.