After a few months since rumour began circulating, Lendlease Global Commercial REIT (“LREIT”) finally revealed on August 4, 2025, that it will indeed be divesting Jurong East Mall (“JEM”) office for S$462 Mil. The buyer of the office tower is Keppel Ltd.
1. Big Strategic Mistake To Sell off JEM Office.
LREIT should have sold off the underperforming Sky Complex buidling in Milan. Instead it sold off a high yielding office building at JEM with stable government agency tenant. I recalled that they just got a 13% rental reversion after the recent 5 years review in 2024. JEM's area is currently still undergoing transformation and development and LREIT will be missing out on potential future capital appreciation. This is actually the worst time to be selling off the JEM office.
2. Market Reaction
Strangely, the market reacted positively (August 5, 2025) to the
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