Manulife US REIT launches private placement to raise around US$94 million

U.S. five dollar currency notes bills; taken September 2018.

Manulife US REIT launched a private placement of new units at an issue price of US$0.811 to US$0.836 to raise gross proceeds of around US$94 million, the REIT said in a filing to SGX after the market close Monday.

The price range marks a 4.4 percent to 7.3 percent discount to the unit’s volume weighted average price of US$0.8746 for trades Monday, the filing said.

The issue price will be set after a book-building process, the REIT said.

Around US$89 million of the proceeds are earmarked to partially fund the acquisition of the Centrepointe property in Fairfax, Virginia, Manulife US REIT said.

The remaining proceeds will be used to pay fees and expenses related to the property acquisition and the private placement, the REIT said.

The maximum number of new units is 115.9 million, based on the minimum issue price and total funds to be raised, which would represent a 9.1 percent dilution of the units, the filing said.

Manulife US REIT said the private placement would be a “fast and efficient” way to raise capital to finance the acquisition while minimizing the equity-fundraising’s exposure to market volatility.

The placement’s joint lead managers and underwriters are DBS Bank, CLSA Singapore and OCBC, the filing said.


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