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.

Next stop: The interchange of public and private good

SINGAPORE (May 20): Two-minute intervals between trains. Fewer breakdowns. Clean, new buses running at a higher frequency. Bright LED screens displaying details of stops on both buses and trains. To many commuters who are enjoying these benefits, the meltdown of Singapore’s transport system in December 2011, and again in July 2015, is a distant memory. Certainly, services have improved significantly. There are new trains and buses, while existing ones have been spiffed up. There has been an overhaul of the older rail systems, presumably including fixing the grips for the electricity rail ....
Moving from compliance to accountability

While the collection, use and disclosure of data is regulated by the Personal Data Protection Act, b

Failed Innopac deal portends mining magnate Gutnick’s woes in Australia

SINGAPORE (May 20): The Australian Securities and Investments Commission (ASIC) is seeking judicial permission to wind down mining company Merlin Diamonds. The regulator is also probing into whether its chairman Joseph Gutnick failed in his duties. Gutnick, who is known as “Diamond Joe”, is under investigation for a A$13 million ($12.3 million) loan made by Merlin to AXIS Consultants, a private company linked to him. Merlin shares have been suspended from trading since October 2018. ASIC is seeking an order to appoint Deloitte to liquidate Merlin, owner of the Merlin Diamond Mine Pro....