The development forms part of the larger Paya Lebar Quarter mixed-used development, which includes PLQ 1 and 2, PLQ 3, and the 429-unit Park Place Residences (Photo: Samuel Isaac Chua/EdgeProp Singapore)
Lendlease Global Commercial REIT (LREIT) is set to acquire a 70% indirect stake in PLQ Mall for a total equity consideration of $234.3 million. The acquisition will be made through the purchase of 70% of the issued units in PLQM Trust, which wholly owns the mall.
The agreed property value stands at $885.0 million, or $2,789 psf on the property’s net lettable area (NLA) of 317,350 sq ft. It represents a 2.1% discount to the appraised value of $904 million ($2,849 psf) by Knight Frank as at Oct 31.
Based on the agreed property value, NPI yield is expected to be 4.5%, while immediate DPU accretion is 2.5%.
Read also: Lendlease REIT's possible acquisition of PLQ mall an 'overall positive': DBS
Upon completion of the transaction — and following the divestment of Jem Office by Nov 12 — Lendlease REIT’s total asset value will rise to $3.9 billion, with Singapore assets accounting for 89% of its portfolio.
PLQ Mall is a 99-year leasehold commercial property located on Paya Lebar Road in District 14. The development forms part of the larger Paya Lebar Quarter mixed-used development, which includes PLQ 1 and 2, PLQ 3, and the 429-unit Park Place Residences. It comprises seven storeys, offering a mix of dining, retail and entertainment options, such as Haidilao, Uniqlo, Shaw Theatres and Starbucks Reserve.
The mall is located close to Paya Lebar MRT Interchange on the East-West and Circle Lines, and is within a short drive to several major expressways including the Pan-Island Expressway (PIE), Kallang-Paya Lebar Expressway (KPE), and East Coast Parkway (ECP).
According to a Nov 5 SGX annoucement, the property's total trade area population is expected to grow to 857,000 by 2030. This will follow the growing residential catchment in the area driven by upcoming residential projects such as MacPherson Weave, Grand Dunman and Tanjong Rhu Riverfront within the Paya Lebar cluster. It will also be further bolstered by the future redevelopment of the Paya Lebar Air Base under the URA Draft Master Plan 2025.
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