[UPDATE] 313@somerset sold to upcoming Lendlease Global Commercial REIT for just over $1 bil

/ EdgeProp Singapore
September 14, 2019 7:10 PM SGT
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SINGAPORE (EDGEPROP) - On Aug 23, Lendlease Retail Investments 1 Pte Ltd, which owns 313@somerset, sold the property for $1.003 billion to RBC Investor Services Trust Singapore Pte Ltd in its capacity as trustee of Lendlease Global Commercial REIT. This was according to a property title search. Lendlease Global Commercial REIT lodged its prospectus on Sept 16, 2019.
313@SOMERSET - 313@Somerset sold for over $1 billion or $3,459 psf based on net lettable area (Photo: Shutterstock)
313@somerset sold for $3,479 psf based on net lettable area (Photo: Shutterstock)
The Reit is expected to have an initial portfolio of two properties, 313@somerset in Singapore, and Sky Complex, which comprises three office buildings in Milan, Italy.
Developed by Lendlease, 313@somerset opened its doors in December 2009. The eight-storey shopping mall is linked to the Somerset MRT Station as well as to two adjacent malls, namely Orchard Gateway and Orchard Central. The mall was valued at a capitalisation rate of 4.25% or $1.003 billion.
The mall at 313@somerset features over 140 outlets and is 99.6% occupied, according to the preliminary prospectus lodged by Lendlease Global Commercial REIT. Based on the net lettable area of about 288,277 sq ft, the price of $1.003 billion translates into about $3,479 psf.
Prior to the injection into the Reit, Lendlease owned a 25% stake in 313@somerset, with the balance 75% held by Lendlease Asian Retail Investment Fund 1 (ARIF 1). In addition, Lendlease had a 14.4% stake in ARIF 1.
Lendlease Global Commercial REIT is targeted to have an offer size of $750 million, with a market capitalisation of about $1 billion. The indicative yield is expected to be about 5.8%.
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