SINGAPORE (May 16): The manager of Frasers Centrepoint Trust (FCT) has proposed an equity fund raising to raise gross proceeds of no less than $421.7 million.

As part of the fund raising, the trust will be issuing a private placement of 135.7 million new units at an issue price of between $2.30 and $2.382 per unit which has an upsize option to raise gross proceeds of up to $369.6 million.

There is also a pro rata and non-renounceable preferential offering of up to 48.3 million new units at an issue price of between $2.270 and $2.352 to raise gross proceeds of at least around $65.4 million.

The issue price represents 2.3% and 5.7% discount to the volume weighted average price (VWAP) of $2.4378 per unit at the close of Wednesday, while the preferential offering represents a 3.5% and 6.9% discount to the VWAP.

The funds raised will be used to partially finance the acquisition of a 33.33% stake in Sapphire Star Trust, which holds the retail units in Punggol Waterway Point; and a 33.33% stake in FC Retail Trustee, the trustee-manager of Sapphire Star Trust.

In addition, $176.4 million from the gross proceeds will go towards paring down bridging loans taken up by FCT to acquire a stake in PGIM Real Estate AsiaRetail Fund.

Trading of FCT units are currently halted. The trust last traded at $2.44 on Wednesday.