REIT fundraisings continue with MCT, KORE raising equity through private placements

Goola Warden
Goola Warden10/18/2019 06:30 AM GMT+08  • 4 min read
REIT fundraisings continue with MCT, KORE raising equity through private placements
Font Resizer
Share to WhatsappShare to FacebookShare to LinkedInMore Share
Scroll to top
Follow us on Facebook and join our Telegram channel for the latest updates.

SINGAPORE (Oct 21): To date, real estate investment trusts are likely to have raised more than $4.3 billion in “follow-ons” such as placements and preferential equity offerings, and excluding IPOs.

On Oct 17, Mapletree Commercial Trust announced that its private placement of 200.9 million units at $2.28 per unit was seven times covered. MCT has also announced a preferential equity offering of 205.6 million units at $2.24 to its unitholders. In total, MCT has stated that it plans to raise “not less” than $902 million to part-fund its acquisition of Mapletree Business City Phase 2 (MBCII), which it is buying for $1.55 billion, or $1.57 billion including expenses and fees.

Since MCT’s private placement units and preferential equity fundraising (EFR) units are being issued at premiums of 31% and 34% respectively to its net asset value (NAV) of $1.70 (as at Sept 30), the acquisition of MBCII is some 4.5% accretive to MCT’s distributions per unit. DPU as at March 31 was 9.14 cents, and annualised DPU based on DPU for the three months to Sept 30 was 9.28 cents. MBCII would add 0.41 cent to its DPU.

For more insights on corporate trends...
Sign In or Create an account to access our premium content.
Subscription Entitlements:
Less than $9 per month
Unlimited access to latest and premium articles
3 Simultaneous logins across all devices
Bonus unlimited access to online articles and virtual newspaper on The Edge Malaysia (single login)
×
Loading next article...
The Edge Singapore
Download The Edge Singapore App
Google playApple store play
Keep updated
Follow our social media
Subscribe to The Edge Singapore
Get credible investing ideas from our in-depth stock analysis, interviews with key executives, corporate movements coverage and their impact on the market.
© 2022 The Edge Publishing Pte Ltd. All rights reserved.
Unlock unlimited access to premium articles with less than $9 per month. Subscribe Now