Mapletree Logistics Trust private placement to raise S$375 million after price set

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Mapletree Logistics Trust said on Thursday that its private placement priced at S$1.21 a unit, toward the lower end of the S$1.196 to S$1.234 indicative range, with gross proceeds of around S$375.0 million expected.

The private placement was around 2.4 times covered, with strong participation from new and existing institutional and other investors, it said in a filing to SGX on Thursday.

The issue price of S$1.21 each was an around 4.4 percent discount to the volume weighted average price of S$1.2651 per unit on 19 September, it said. A total of 309.92 million new units will be issued under the placement, it said.

The proceeds are earmarked for the cost of acquiring five logistics properties in Singapore, a deal which was announced early in July, it said.

Around S$326.2 million of the proceeds, or around 87.0 percent of the gross proceeds, will be used to partially fund the consideration of S$730.0 million, Mapletree Logistics Trust’s manager said.

Another S$48.8 million of the proceeds will be used to partially pay the upfront land premium to JTC Corp., estimated stamp duties and other costs, it said.

The new units are expected to being trading on or around 28 September, it said.

DBS Treasury Investments has been allocated 1.8 million new units under the private placement, it said.

Clarification: In a filing to SGX after the market close on Thursday, Mapletree Logistics Trust corrected its statements on the size of the consideration for the logistics properties’ acquisition and that the proceeds would only partially pay the upfront land premium. This article has been updated to reflect those changes. 

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