RHB Group Research is positive on Prime US REIT’s acquisition of two properties in San Diego and Florida for US$245.5million ($330.2 million), along with its US$80 million private placement to partially finance the acquisition.

See also: Prime US REIT acquires offices in San Diego and Florida for US$246 mil, launches US$80 mil private placement and Prime US REIT issues 98.8 mil new shares under private placement, raising US$80 mil

The remainder of the acquisition will be funded by debt. Management has guided that the deal will result in distribution per unit (DPU) accretion of 2.4%, based on pro-forma FY2020 ended December financials.

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