The manager of Lendlease Global Commercial REIT (LREIT) has secured a 13% increase over its current rent rate for its Jem office. The new rate will take place for five years effective from Dec 3, 2024, onwards.
The Jem office is fully leased to Singapore’s Ministry of National Development (MND) till 2044 with a rental review taking place once every five years.
MND is LREIT’s top tenant by gross rental income (GRI), contributing 11.2% to the REIT’s portfolio as at June 30, 2024.
The increase will see MND’s GRI contribution increase to around 12% on a pro forma basis as at Dec 31, 2024.
“Our Singapore retail and office assets continued to perform strongly as demonstrated by the positive rental increase. Jurong Gateway, where Jem is located, is an important location earmarked to be the second central business district in Singapore,” says Kelvin Chow, CEO of the manager.
The REIT announced Chow’s resignation on Feb 11, who will be leaving to “pursue other opportunities”. He will be replaced by Guy Alexander Cawthra with effect from April 1. Cawthra is the managing director of Lendlease Group’s Asia investment management arm. Lendlease Group is LREIT’s sponsor.
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As at Dec 31, 2024, LREIT’s Singapore portfolio accounts for around 90% of its total portfolio by valuation.
As at 11.03am, units in LREIT are trading flat at 50.5 cents.
