Ascendas REIT plans private placement to raise $450 mil mainly for recent UK acquisition

Ascendas REIT plans private placement to raise $450 mil mainly for recent UK acquisition

PC Lee
06/09/18, 11:37 pm

SINGAPORE (Sept 6): Ascendas REIT is raising gross proceeds of no less than $450 million in a private placement to raise funds for acquisitions and a new development.

The private placement will sell about 178 million new units in Ascendas REITs to institutional and other investors at an issue price of between $2.528 and $2.606.

Of the gross proceeds, $250 million or 55.5% will go towards partially funding the acquisition of a second UK logistics portfolio, $109 million or 24.2% will be used to partially fund the proposed development of a build-to-suit facility in Singapore while $3.9 million will go towards paying the estimated fees and expenses for the placement.

See: Ascendas REIT to acquire portfolio of 12 UK logistics properties for $373 mil

The issue price range of between $2.528  and $2.606 per new unit represents a discount of between 3.65% and 6.53% to the volume weighted average price of $2.7047 per unit for all trades done on Thursday.

The number of new units to be sold represents 6.1% of the total 2.93 billion units of Ascendas REIT in issue as at June 28.

Update on Sept 7, 10.32am: Ascendas REIT’s manager said it sold 178 million new units at $2.54 each, raising around $452.1 million.

The REIT manager said the placement was 2.2 times subscribed, and came at the mid-point of the indicative price range of between $2.528 and $2.606 per unit.

The deal drew "strong demand" from new and existing institutional, accredited and other investors, it added.

The price per unit represents a discount of 6.09% to the volume-weighted average price (VWAP) of $2.7047 per share for the trading day on Sept 6.

Genocide can't be good for business

SINGAPORE (Nov 19): It was only three years ago, after the watershed elections in November 2015 that saw Aung San Suu Kyi transition from democracy icon under house arrest to Myanmar’s State Counsellor and de facto leader, that Myanmar began to emerge from years of economic isolation. In 2016, the US lifted some of its economic sanctions; in 2017, there were 3.44 million tourist arrivals into the country, 18% more than the year before. Meanwhile, the Myanmar government has made considerable effort to entice foreign direct investment and spur local enterprise. It has passed new laws to mak....

Noble gets go-ahead for controversial restructuring plan, pays funds into court in ongoing legal suit

SINGAPORE (Nov 19): Troubled commodities trader Noble Group is moving ahead with a controversial restructuring plan that will see its investors’ shareholding significantly diluted and its creditors owning most of the company. Meanwhile, a former employee whom it sued for conspiracy to injure the company by unlawful means is expecting to be vindicated and compensated for his legal costs. On Nov 15, Noble said its restructuring plan had been sanctioned by the relevant courts and would proceed. According to its indicative timetable, the last date for trading in its shares is Nov 16....

Looking beyond quarterly fluctuations in ST Engineering's growth story

SINGAPORE (Nov 17): ST Engineering’s latest third-quarter results have shown improvements in profitability in three of its four key business units of aerospace, electronics, land systems and marine. In addition to the main four, there is an “others” unit, which lumps together shared services, new ventures and other related activities. It reported a loss of $7.3 million. ST Engineering’s latest third-quarter results have shown improvements in profitability in almost all its business units. The marine unit, on the other hand, suffered a 35% y-o-y drop in earnings to $12.8 millio....
BMW charges up an 'electrified future'

Christopher Wehner, managing director of BMW Group Asia, explains how electric cars such as the BMW