COVER STORY global economy , the accretiveness of the acquisition , cost of credit and LREIT ’ s unit price at the point of acquisition .
LREIT ’ s gearing ratio was 34.3 % as at September 30 , 2021 . This is well below the regulatory limit of 50 %, which provides us with ample debt headroom to grow the portfolio . The S $ 1 billion multicurrency debt issuance programme will also provide more funding options .
In terms of geography , Singapore will be the primary city we will focus on in the near term . Jem , of which we have recently acquired an additional stake , increased our exposure in the resilient suburban retail segment and boosts our portfolio income diversification . The acquisition was 3.6 % DPU accretive for our unitholders .
Suburban retail in Singapore remains a resilient segment . Jem has established itself as a dominant retail mall in the West Region and is one of Jurong Gateway ’ s best performing retail and office mixed-use assets . Its retail component is well-tenanted with a high committed occupancy of approximately 99 %. Essential services trade mix such as food and beverage , services , supermarket and hypermarket , and beauty and health account for 55 % of its net lettable area .
Its office component is 100 % leased to the Ministry of National Development for a long lease term of 30 years , with a remaining lease term of approximately 24 years as of September 30 , 2021 . With the expected office decentralisation trend resulting from the COVID-19 pandemic and the adoption of remote working , Jem will be particularly well-positioned as it provides conveniently located good quality office spaces near residential communities .
In addition , Jem has strong sustainability credentials . It was awarded Green Mark Platinum and Universal Design Mark Gold Plus by the Building and Construction Authority in Singapore .
Q2
You have exposure to both Orchard Road prime retail and the Jurong suburban retail cum decentralised office district and have been increasing exposure to both sub-markets .
a . What is the attractiveness of both submarkets during COVID and as we emerge from the pandemic ?
Our assets , 313 @ somerset and Jem , are dominant malls located in the Somerset precinct and Jurong Gateway , respectively . 313 @ somerset is a lifestyle destination mall relying on the local customer base as it effectively taps discretionary spending by
Photo : Discovery Walk
millennials and young working adults . Jem is one of the best performing mixed-use retail and commercial assets in the west of Singapore . It has a strong natural catchment from the estimated population of 1.1 million residents in Singapore ’ s west .
Suburban malls have proven to be resilient across market cycles . They have demonstrated relevance and resilience amid extended restrictions and Work-From-Home ( WFH ) trends with exposure to essential trades such as supermarkets and food and beverage outlets .
Jem is a dominant suburban mall located in the heart of Jurong Gateway and the Jurong East Regional Centre , which serves the entire West region . The region is the primary destination retail and business centre for the western and northwest parts of Singapore . Essential services trade mix such as food and beverage , services , supermarket and hypermarket , and beauty and health account for c . 55 % of its net lettable area .
The ability to achieve rapid replacement of former Robinsons
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