Frasers Commercial Trust, Singapore’s third-biggest office property trust, said it plans to buy an office building in the city-state and raise $888.9 million to repay maturing debt.

The trust obtained $675 million in two loans and plans to raise $213.9 million selling stock in a three-for-one rights offer, it said in a statement today. Frasers Commercial will offer 2.25 billion shares at 9.5 cents apiece, a 60% discount to yesterday’s closing share price of 24 cents.

“It is critical for the refinancing of the maturing debt to take place for FCOT to remain as a going concern,” the trust said in the statement.

Frasers Commercial, also known as FCOT, is seeking to reduce debt after Standard & Poor’s affirmed its “BB” long- term debt rating with a negative outlook on June 17. The trust had $945.5 million of debt as of March 31, of which $624.5 million is due in the second half of this year, Frasers Commercial said in the statement.

The refinancing will be granted subject to the completion to the completion of the rights offer and the acquisition, the trust said in a separate statement.

“There is no certainty that FCOT will be able to extend its debt maturing in 2009 or obtain alternative financing proposals should these transactions not proceed,” it said.