SINGAPORE (Dec 10): OCBC Investment Research is maintaining its “buy” call on Ascendas REIT with a lower fair value of $2.50 on the issuance of new equity to partly fund the acquisition of a business park property.

Ascendas REIT (A-REIT) is proposing a private placement of 90 million new units and a pro-rata and non-renounceable preferential offering of 93.9 million new units on the basis of three new units for every 80 existing units.

The issue price of the private placement was confirmed at $2.223. This represents a discount of 6.6% to A-REIT’s last closing price prior to its trading halt. The issue price of the preferential offering was set at 0.5 cents lower than the private placement price. In total, A-REIT would raise gross proceeds of $408.3 million.

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