Frequently Asked Questions
1. What are the stock symbols of Lendlease Global Commercial REIT (“LREIT”)?
|Bloomberg||LREIT SP Equity|
|ISIN Stock|| SGXC61949712
2. How much does the Sponsor hold in LREIT?As at 10 September 2020, Lendlease Corporation Limited, the Sponsor, owns 25.5% of the units in LREIT. Free float: 74.2% of the units in LREIT were held in the hands of the public.
3. What are the Manager’s fees payable by LREIT?
a. Base Fee: 0.3% per annum of the value of LREIT’s deposited property1
b. Performance Fee: 5.0% per annum of LREIT’s net property income
c. Acquisition Fee: 1.0% of the acquisition price of any real estate purchased, whether directly or indirectly through one or more subsidiaries, by LREIT (pro-rated if applicable to the proportion of LREIT's interest in the real estate acquired)
d. Divestment Fee: 0.5% (or such lower percentage as may be determined by the Manager in its absolute discretion) of the sale price of any real estate sold, whether directly or indirectly through one or more subsidiaries, by the REIT (pro-rated if applicable to the proportion of LREIT's interest in the real estate sold)
e. Development Management Fee: 3.0% of the total project costs incurred in a development project calculated after development management fee paid to the Property Managers or any entity engaged by the Manager to perform the services specified1Refers to all the assets under LREIT. For the purposes of calculating the Base Fee, where LREIT holds its investments through one or more SPVs, the deposited property shall include all the assets of the relevant SPV, pro-rated, if applicable, to the proportion of LREIT’s interest in the relevant SPV.
4. What are the property management fees payable by LREIT?
Singapore Property Manager
a. Property Management Fee: 2.0% per annum of gross revenue and 2.0% per annum of net property income
b. Leasing Fee: 80% of one month base rent, one month service charge and one month advertising and promotion fee (if any), payable by the tenant under the lease
c. Tenancy Design Review Fee: where tenancy design review services are required, a fixed tenancy design review fee of S$6,000 per tenancy will be charged (subject to annual increase by a percentage which reflects the percentage increase in the CPI in Singapore during the 12 month period prior to that date plus 1%)
Milan Property Managera. Property Management Fee: 0.28% per annum of the annual collected rent of the Milan property, subject to a minimum sum of €20,000.
5. What are the indices that LREIT has entered?
Indices that LREIT entered as at 31 March 2021:
- FTSE ST Small Cap Index
- FTSE ST Singapore Shariah Index
- GPR APREA Investable REIT 100 Index
- iEdge S-REIT Leaders Index
- iEdge S-REIT Index
- MSCI Singapore Small Cap Index
6. Where can I find portfolio information of LREIT?More information on LREIT’s portfolio and its investments could be found on LREIT’s website under Investment Portfolio: https://www.lendleaseglobalcommercialreit.com/investment-portfolio/
7. What is LREIT’s distribution policy?LREIT's distribution policy is to distribute at least 90% of its taxable income for each financial year, with the actual level of distribution to be determined at the Manager’s discretion.
The distribution amount calculated will be as at 30 June and 31 December each year for the six-month period. Distributions will be in SGD and are generally paid within 60 days after the end of each distribution period.
8. Does LREIT have Distribution Reinvestment Plan?LREIT is currently not under Distribution Reinvestment Plan.
9. What is LREIT’s investment mandate?LREIT is established with the principal investment strategy of investing, directly or indirectly, in a diversified portfolio of stabilised income-producing real estate assets located globally, which are used primarily for retail and/or office purposes.
10. Can I invest in LREIT using funds from my SRS or Central Provident Fund (“CPF”)?Yes, you can invest in LREIT with funds from your SRS and CPF account through DBS Bank, OCBC Bank and UOB Bank.
11. Is the distributable income from LREIT subject to tax?
LREIT’s distributions may comprise all or a combination of the following types of distribution, to which different Singapore tax treatment applies:
Taxable income distribution
The Trustee and Manager will deduct income tax at the prevailing corporate tax rate, currently at 17%, except in certain circumstances. For distributions made to “qualifying unitholders”, the distribution is allowed to be made without deduction of tax.
A qualifying unitholder refers to:
a. An individual;
b. A company incorporated and tax resident in Singapore;
c. A Singapore branch of a company incorporated outside Singapore;
d. A non-corporate Singapore incorporated or registered entity excluding partnerships (ie. a town council, a statutory board, a registered charity, a registered co-operative society, a registered trade union, a management corporation, a club and a trade and industry association);
e. An international organisation that is exempt from tax on such distributions by reason of an order made under the International Organisations (Immunities and Privileges) Act (Chapter 145 of Singapore);
f. A real estate investment trust exchange-traded fund which has itself been accorded the tax transparency treatment;
g. An agent bank or a Supplementary Retirement Scheme ("SRS") operator who act as nominee for individuals who have purchased units in LREIT under the Central Provident Fund Investment Scheme or the SRS respectively; or
h. A nominee who can confirm that the units are held for beneficial owners who are qualifying unitholders listed in (a) to (f) above.
The above qualifying unitholders, unless they are exempt from tax because of their own circumstances, will be subject to Singapore income tax on taxable income distribution that they received at their own applicable tax rates.
In addition, distributions made to qualifying non-resident non-individual Unitholders and qualifying non-resident funds will be subject to a final withholding tax rate at a reduced rate of 10% (for distributions made on or before 31 December 2025).
Tax-exempt income distribution
Unitholders will be exempt from Singapore income tax on such distributions. No tax will be deducted at source or withheld on such distribution.
Capital distribution is regarded as "return of capital" in the hands of the Unitholders for Singapore tax purposes and is not subject to Singapore income tax. The amount of such distribution will be applied to reduce the cost base of LREIT units held by unitholders. For unitholders who are liable to Singapore income tax on gains arising from the disposal of LREIT units, the reduced cost base of LREIT units will be used to calculate the amount of taxable gains when the LREIT units are subsequently disposed of. If the amount of return of capital exceeds the cost base or reduced cost base of LREIT units, the excess will be subject to tax as trading income of such unitholders.
Other gains distributionSuch distribution is not taxable in the hands of all unitholders.
12. Where can I find information on eligibility of tax refund?
Detailed information on eligibility of tax refund can be found on LREIT’s website under Investor Centre: https://www.lendleaseglobalcommercialreit.com/investor-centre/tax/For further questions on tax refund, you may wish to email to [email protected] for assistance.
13. What are the awards and accolades achieved by LREIT?
We are committed to leading the evolution of our industry to be truly sustainable – environmentally, socially and economically. This is fundamental to our vision to create the best places for people today and for generations to come.
LREIT was ranked first and is the regional sector leader in the Asia Retail (Overall), Asia Retail (Listed), Asia (Overall) and Asia (Listed) categories in the 2020 Global Real Estate Sustainability Benchmark (“GRESB”). In the Global Retail (Listed) category, LREIT was ranked second, cementing its leadership on the sustainability front.On the asset level, [email protected] garnered the BCA Green Mark Platinum Award and National Environment Agency 3R Awards (Shopping Mall Category). For Sky Complex, all three office buildings have Grade A office building specifications and are equipped with facilities such as floating floor, suspended ceiling with integrated and cable ducts. Buildings 1 and 2 are connected via a link, allowing for ease of access between the buildings. Building 3 is the newest of the three buildings and has a LEED Gold Certification. All three office buildings are designed in accordance with energy saving criteria and high use flexibility.
14. What are the considerations in selecting [email protected] in Singapore and Sky Complex in Milan as LREIT’s initial portfolio?
a. A diversified portfolio of income-producing real estate assets was carefully selected and put together for LREIT. With a mix of quality retail and office properties in the key gateway cities of Singapore and Milan, LREIT enjoys stability from the long-term lease of the office asset, while the retail asset provides a stable and growing rental income stream.
b. Singapore and Milan are important markets for the Sponsor.
In Singapore, the Sponsor has a strong presence through assets such as [email protected] under LREIT, and others like Jem, Parkway Parade and Paya Lebar Quarter – the Group’s headquarters in Asia which opened in October 2019.
In Milan, the Sponsor has established a long-term strategic partnership with one of Canada’s largest pension investment managers for the development and ownership of a major urban regeneration project, Milano Santa Giulia, where Sky Complex is located. Milano Santa Giulia covers more than 110 hectares in the southeast of Milan. The project has a gross development value of €2.5 billion and is split into two distinct areas to the north and south of a new mixed-use development.
c. LREIT’s portfolio comprises assets that are well-located, well-managed and well-positioned, with visible growth potential backed by favourable market dynamics, a high committed occupancy, balanced lease expiry profile, built-in portfolio rental escalation, and a high-quality, well-diversified tenant base.