Suntec REIT prices placement at top end of range to raise around S$200 million

Suntec City mall in SingaporeSuntec City mall in Singapore

Suntec REIT priced its placement of new units at S$1.80 each, raising around S$200 million after the upsize option was exercised, the REIT said in an SGX filing Thursday.

The new units had been expected to price in a range of S$1.77 to S$1.81, it said.

The S$1.80 issue price is a 4.2 percent discount to the volume weighted average price of S$1.879 the units traded at on Wednesday, the filing said.

Suntec REIT will issue 111.11 million new units under the placement, it said.

Around S$167.5 million of the proceeds will be used to finance the potential acquisition of one or more properties, while S$28.4 million is earmarked to refinance existing debt and/or fund asset enhancement initiatives and capital expenditure, Suntec REIT said.

The REIT added that there was no assurance any acquisition would proceed.

Citigroup global Markets Singapore and DBS Bank were the joint lead managers and underwriters for the placement, the filing said.

 

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