LREIT Buys 70% Stake in PLQ Mall, Strengthening Singapore Retail Portfolio

Singapore-listed Lendlease Global Commercial REIT (LREIT) acquired a 70% indirect stake in Singapore’s PLQ Mall in a landmark deal valuing the property at SGD 885mn (USD 677.4mn). The acquisition was executed through the purchase of 70% of units in PLQM Trust, with the remaining 30% interest remaining with LREIT’s sponsor, Australia-based Lendlease Corporation.

The seller of the stake is the Abu Dhabi Investment Authority (ADIA), which partnered with Lendlease in 2015 to develop the property. The transaction price reflects a 2.1% discount to the mall’s appraised value of SGD 904mn by Knight Frank and was partly financed through a private placement that raised no less than SGD 270mn.

PLQ Mall is a high-traffic, seven-storey suburban retail hub forming part of the Paya Lebar Quarter (PLQ)—a prominent mixed-use precinct in Singapore’s east that includes office towers and residences. Opened in 2019 and spanning 317,350 square feet of net lettable area, the mall is home to over 200 tenants, including global brands like Uniqlo, Haidilao, Shaw Theatres, and Starbucks Reserve. Its strategic location atop the Paya Lebar MRT interchange ensures strong footfall and excellent connectivity.

The acquisition is a significant strategic move for LREIT, boosting the proportion of Singapore assets in its portfolio to 89% and raising its suburban retail exposure to 62.7%. The asset boasts a robust 4.5% net property income (NPI) yield, 99.7% occupancy, and a weighted average lease expiry of 2.5 years —demonstrating strong tenant demand and stable income generation.

LREIT's management highlighted several compelling benefits of the deal, including immediate 2.5% accretion to distribution per unit (DPU), increased exposure to essential services, and enhanced resilience through a diversified tenant mix. The deal is also aligned with the REIT’s strategy of capital recycling — deploying funds into higher-yield, long-term growth assets in core urban markets.

The acquisition reflects the manager’s confidence in the Singapore retail market, particularly in well-located suburban malls. With the Paya Lebar area set to benefit from future residential developments and favorable demographic trends, PLQ Mall is poised to deliver sustained performance and value to LREIT’s unitholders in the years ahead. Completion of the transaction is expected by end-2025.

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