Suntec REIT has proposed Wednesday issuing 84.7 million new units in a private placement to raise gross proceeds of as much as S$150 million.
The issue price will be between S$1.77 to S$1.81 per new unit, the REIT said in a filing to SGX after the market close. The issue price will be determined by a book-building process, it said.
The pricing is a 3.7 percent to 5.8 percent discount to the volume weighted average price of S$1.879 per Suntec REIT unit for trades on Wednesday, the filing said.
The placement also has an option to increase the size to raise up to an additional S$50 million, the REIT said.
The proceeds will be used to finance the potential acquisition of one or more properties in Australia as well as for general corporate and working capital purposes, it said.
Suntec REIT said it is aiming to extend its footprint in Australia via acquisitions expected to increase distributable income to unitholders.
The placement will increase the number of issued units by 3.2 percent, it said.
The offer to acquire the placement units will be made to eligible institutional, accredited or other investors, Suntec REIT said.