The management of Lendlease REIT ("LREIT") announced this morning that it will acquire the remaining 30% of PLQ Mall and will launch a $196.6 mil rights issue priced at 55.8 cents each. Finally, the management listened after the previous private tranche placement in November 2025 whereby the same PLQ property acquisition leads to dilution of existing loyal unit-holders. I hope that the management continues to offer retail investors preferential rights first before tapping on new investors as a form of basic courtesy.
1. Subscribe or Not?
Personally, I will be taking the issuance up given the very attractive entry price of S$0.558 per unit relative to the market closing rate before the announcement of S$0.60 per unit. This will be a more than 6% distribution yield for the new units.
The only uncertain risk here is the opening of the RTS which will grant Singaporeans more convenient access to Malaysian shopping malls and the extent of the adverse impact on Singapore retail scene. This is somewhat similar to Hong Kong retail which had went downhill for the past few years as shopper flocked to Shenzhen. But I am optimistic that the impact will be minimal on Singapore retail scene.
2. Key Dates For Investors
Parting Thoughts
At the current low offered pricing of the new units at S$0.558 per unit, I think that the best option out there is to take it up. Interestingly, the previous private placement was done at S$0.602 per unit which is 7% more expensive. Most likely, I will also be subscribing for the excess. Also, guess, I no longer need to go to LREIT's 2026 AGM to pick a bone with their CEO and CFO on the unfair treatment of existing unit-holders which is very disrespectful and high handed in their previous fund raising exercise.
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