Lendlease REIT

Shion

Shion

Senior Mentor
Joined
Oct 24, 2008
Messages
375,344
Reaction score
121,859
313@somerset may take hit on rents during lease renewals, says landlord

313@somerset may take hit on rents during lease renewals, says landlord

https://www.straitstimes.com/busine...-on-rents-during-lease-renewals-says-landlord

SINGAPORE (THE BUSINESS TIMES) - The manager of Lendlease Global Commercial Reit (LReit) said on Tuesday (Nov 3) that the subdued retail sector and leasing demand may potentially depress 313 @ somerset's rents during lease renewals and when entering into new leases.

"Leasing activities are expected to remain soft due to weak demand against Covid-19 headwinds," it said in a business update for LReit's first fiscal quarter ended Sept 30.

"Retail tenants are adopting a wait-and-see approach and are recalibrating their cost structures, which may pose a challenge during lease renewal," the manager added.

Occupancy at the Singapore mall totalled 95.6 per cent by the end of September, although LReit's manager has secured a new tenant since then, which will improve the occupancy to 98 per cent.

Its tenant sales recovered to about $42.6 million for July to September this year, more than triple that of $11.7 million for the previous quarter and about 70 per cent of pre-Covid-19 levels.

Visitation also improved quarter on quarter, totalling 6.2 million people for the latest quarter, almost triple that of 2.2 million for April to June, and about 60 per cent of pre-Covid-19 levels.

Domestic demand will continue to support the mall's tenant sales and visitor numbers, seeing as travel restrictions are still in place, LReit's manager said on Tuesday.

313 @ somerset's tenant retention rate held steady at 80 per cent during the quarter.

Meanwhile, Sky Complex in Milan, comprising three Grade-A office buildings, is fully leased till 2031, excluding the tenant's break option in 2026.

The tenant, satellite TV platform Sky Italia, has made all its rental payments in a timely manner with no rental waiver granted, LReit's manager said. This came as Sky Italia continued to operate its broadcasting business during the pandemic, with safe management measures in place.

The stable revenue from Sky Complex is expected to help protect LReit's income as the coronavirus pandemic takes a toll on the retail sector.

Overall, LReit's portfolio properties were almost fully occupied, although the occupancy rate edged down to 99 per cent as at Sept 30, from 99.5 per cent as at June 30.

Leases that are expiring by June 2021 make up about 3 per cent of net lettable area (NLA) and 12 per cent of gross rental income (GRI).

Thus, the weighted average lease expiry of LReit's portfolio amounted to 9.5 years by NLA and 4.9 years by GRI as at end-September.

LReit's gearing ratio was 35.6 per cent as at Sept 30, up slightly from 35.1 per cent as at June 30.

On Oct 1, LReit bought a stake in the Jem suburban mall in Singapore via a 5 per cent interest in Lendlease Asian Retail Investment Fund 3, for about $45 million. The fund, managed by a subsidiary of LReit's sponsor Lendlease Corp, indirectly holds a 75 per cent interest in Jem.

This acquisition provides income diversification, as the office component of the property, accounting for about 35 per cent of NLA, is fully leased on a long-lease term to Singapore's Ministry of National Development, LReit's manager said.

LReit units rose 0.5 cent or 0.8 per cent to 62 cents as of 11am on Tuesday.
 
Shion

Shion

Senior Mentor
Joined
Oct 24, 2008
Messages
375,344
Reaction score
121,859
Lendlease targets absolute-zero carbon emissions by 2040

Lendlease targets absolute-zero carbon emissions by 2040

https://www.businesstimes.com.sg/re...argets-absolute-zero-carbon-emissions-by-2040

SYDNEY-BASED Lendlease, which manages Singapore-listed Lendlease Global Commercial Reit, has pledged new sustainability goals.

In a press statement, the property and infrastructure group said it is committed to becoming a 1.5 degrees Celsius-aligned company.

This will be underpinned by two carbon targets - net-zero carbon emissions by 2025, and absolute-zero carbon emissions by 2040.

To achieve this decarbonisation goal, Lendlease will take five key steps:

- Create a decarbonisation investment strategy for both net-zero and absolute-zero targets, guided by Lendlease's targets, business strategy and development pipeline
- Phase out all fossil fuel-based energy sources - such as petrol, diesel, liquefied petroleum gas, natural gas, coal and oil - in its operations, and focus on fuel switching and electrification in its assets and developments
- Transition to 100 per cent renewable electricity by 2030 through onsite renewable technologies as well as the purchase of renewable electricity and renewable-energy certificates
- Collaborate with supply chain partners to drive innovation and create digitally-enabled supply chains for circular-economy outcomes
- Collaborate with tenants and residents at its properties to transition to renewable energy

Lendlease's portfolio includes Singapore suburban malls Jem and Parkway Parade. Among its key projects are Paya Lebar Quarter, which includes Park Place Residences, as well as Tun Razak Exchange with TRX Residences in Kuala Lumpur.

In addition, Lendlease said it is committing to create A$250 million (S$245 million) of social value by 2025 through shared-value partnerships.

Tony Lombardo, Asia chief executive officer (CEO) of Lendlease, said that as a signatory to the United Nations Global Compact, the firm is looking to continuously improve its operations by working towards new sustainability goals.

Lendlease aims to help drive industry transformation by delivering inclusive, healthy and adaptable places that can thrive through change, he added.

The Australia-listed group also said in a press statement that its funds have again taken some of the top spots in this year's Global Real Estate Sustainability Benchmark rankings in the Asia Retail category.

Lendlease Global Commercial Reit, for instance, ranked first and clinched the status of regional sector leader. Kelvin Chow, CEO of the real estate investment trust's manager, said this underscores the trust's focus on benchmarking its performance against global sustainability frameworks.

Units of the trust, whose portfolio includes the 313@Somerset mall in Singapore and the Sky Complex office buildings in Milan, fell 0.5 Singapore cent or 0.7 per cent to trade at 67.5 cents as at 11.06am on Thursday.
 
apriliasiao

apriliasiao

Supremacy Member
Joined
Dec 11, 2001
Messages
9,099
Reaction score
770
Anyone got details on Lendlease Asian Retail Investment Fund 3 Limited?
Can't seems to find any info on this.
 
You must log in or register to reply here.
Important Forum Advisory Note
This forum is moderated by volunteer moderators who will react only to members' feedback on posts. Moderators are not employees or representatives of HWZ Forums. Forum members and moderators are responsible for their own posts. Please refer to our Community Guidelines and Standards and Terms and Conditions for more information.
Top