Senja Close EC™

5 hours 18 min agoSINGAPORE – DBS Group Research has described Lendlease Global Commercial Real Estate Investment Trust (Lendlease Reit) as an “overall positive” after the REIT’s sponsor Lendlease Group said it is looking to acquire a 70 per cent stake in Paya Lebar Quarter (PLQ) mall.ADVERTISEMENTIn DBS’s Sept 23 note, which reiterated its “buy” call and 75 cents target price on the REIT, DBS pointed out that it has been known for some time that PLQ was in the right of first refusal pipeline for Lendlease Reit, and that the mall has now entered its second renewal cycle and is deemed stabilized.The asset, which has over 340,000 sq ft of retail space, is reportedly valued at over $1 billion and is currently owned 70 per cent by the Abu Dhabi Investment Authority (Adia) and 30 per cent by Lendlease Group, according to the Australian Financial Review.Lendlease Reit had announced the divestment of another asset, the JEM office for $462 million, to Keppel less than two months prior. The sale is expected to be completed by the end of 2025.”Assuming proceeds are fully used to reduce debt, the REIT’s gearing will be lowered to 35% from 42.6% now. This means the REIT will then have the debt capacity to fuel its growth ambitions,” DBS said in its note.ACCEPTAdd CommentUpon acquisition, PLQ will be one of the newest and best-built malls in the east of Singapore, anchoring Lendlease Reit as an emerging pure-play retail S-REIT. In DBS’s view, the timing of the acquisition may be early, but the opportunity to acquire a quality mall could be too good to pass up, especially with the current low interest rates – the Singapore Overnight Rate Average (SORA) is around 1.45 per cent – which make an accretive deal feasible.DBSCiting a net property income yield of 4.5 per cent – based on an estimated asset value of $800 million (for the 70 per cent stake) – DBS estimates that a deal structured with half equity and half debt would allow Lendlease Reit to meet its hurdle distribution per unit (DPU). Moreover, the REIT’s gearing will stay below 40 per cent.In its note, DBS concluded, “Considering the acquisition, PLQ will bring significant benefits to Lendlease Reit, and with the addition of PLQ, the REIT will be positioned well as an emerging pure-play retail S-REIT.

Once a rustic village with a strong emphasis on agriculture, Bukit Panjang has undergone significant urban development in recent times. This has resulted in a decline of farming activities in the area. However, the emergence of the Bukit Panjang Community Garden Trail has revived the kampong spirit. The community now boasts 11 well-maintained gardens, each with its unique focus such as medicinal plants or edible produce. A typical community garden comprises a variety of vegetables, herbs, and fruits, and is a popular spot among the elderly. In addition to these, the scenic senja close has been a major attraction for visitors and residents alike.