Lendlease Global Commercial REIT (LREIT) has announced a 13% increase in the base rent for its Jem office, effective from 3 December 2024. This adjustment follows a rental review and applies for the next five years. The Jem office, located in Jurong Gateway, is fully leased to Singapore’s Ministry of National Development (MND) until 2044, with rental reviews scheduled every five years.
The MND is a key tenant for LREIT, contributing 11.2% to the REIT’s gross rental income (GRI) as of 30 June 2024. With the new rental terms, this contribution is expected to rise to approximately 12% by the end of 2024. Kelvin Chow, CEO of Lendlease Global Commercial Trust Management, highlighted the strong performance of their Singapore portfolio, stating, “Our Singapore retail and office assets continued to perform strongly as demonstrated by the positive rental increase.”
In addition to the office space, LREIT’s retail portfolio has shown robust growth, achieving a 99.9% committed occupancy rate and a positive rental reversion of 10.7% as of 31 December 2024. The tenant retention rate stands at a healthy 86.1%.
LREIT has also priced $87.5 million (S$120 million) in 4.75% fixed-rate perpetual securities, with proceeds earmarked for refinancing existing securities in April 2025. As of the end of 2024, LREIT has undrawn debt facilities amounting to $113.8 million (S$156.1 million), positioning it well for future growth and investment opportunities.
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