facebookWhy is JEM not included in the recent Lendlease Global REIT IPO? - Seedly



09 Dec 2019


Why is JEM not included in the recent Lendlease Global REIT IPO?

Why is it not included since it is also under the same company?

Discussion (4)

What are your thoughts?

Kenneth Lou

Kenneth Lou

26 Sep 2019

Level 14·Co-founder at Seedly

Basically a summary to this question is that JEM and Paya Lebar Quarter were sitting as private assets which was the way the main sponsor - Lendlease wanted it to be.

I think this is the best answer to this question:

FROM Jem to Paya Lebar Quarter, Lendlease has built a number of plum projects in Singapore that could eventually become acquisition targets for the new Lendlease Global Commercial Reit.

But the Reit (real estate investment trust) manager is in “no hurry” to buy more assets, and will focus for now on getting maximum value out of a S$1.4 billion starting portfolio that comprises Orchard strip mall [email protected] and Sky Complex, a Grade A office in Milan.

Tony Lombardo, chairman of the Reit manager and chief executive of Lendlease Asia, told The Business Times on Tuesday: “Our assets in Singapore, they’re already sitting in private funds and the like. It was very hard for us to access those products today. Hopefully, over time, as we work with various investors, the REIT may become the exit vehicle for PLQ (Paya Lebar Quarter) and Jem and the like.

“For us it’s something that we will look to over time... It really comes down to our other investors and when they would like to potentially exit,” he added, noting that Lendlease owns 30 per cent of PLQ. The other 70 per cent is held by the Abu Dhabi Investment Authority.

You can read the full article here: https://www.businesstimes.com.sg/companies-mark...

The likelihood is that JEM still have some growth in profits to come. Parent sponsor jormally sell assets to their child REIT when assets mature and how high valuation to milk REIT holder fully. Jem is probably the calf that has not fully grown to a cow yet

Think Lendlease only worth investing if it inject JEM and/or Parkway Parade...

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