Frasers Centrepoint Trust private placement prices at top of range amid strong demand

Waterway Point mall, by Frasers Property, at Punggol New Town in Singapore; taken August 2018.Frasers Property‘s Waterway Point mall at Punggol New Town in Singapore.

Frasers Centrepoint Trust priced its private placement at S$2.382, the top of its S$2.30 to S$2.382 pricing range, after meeting with strong demand from new and existing institutional and other accredited investors, the trust said Friday.

The private placement was 2.3 times subscribed, triggering the upsize option, with a total 155.18 million new units to be issued, increasing the total gross proceeds to around S$369.6 million, Frasers Centrepoint Trust said in a filing to SGX before the market open.

The offering’s pricing is a 1.5 percent discount to the volume-weighted average price (VWAP) of S$2.4189 a unit for trades Wednesday, adjusted for the estimated advanced distribution of around 1.89 Singapore cents a unit.

The advance distribution will be paid for the period from 1 April through the day prior to the new units are issued, which is expected to be 28 May, the filing said.

“We are delighted with the excellent outcome of this private placement, raising more than 16% of our market capitalization in proceeds, while achieving a tight discount of 1.5 percent to the adjusted VWAP amidst the market volatilities and ongoing geopolitical trade tensions,” Chew Tuan Chiong, CEO of Frasers Centrepoint Asset Management, the trust’s manager, said in the statement.

“This is a strong endorsement of FCT’s track record in delivering steady growing DPU (distribution per unit) and its growth strategy,” Chew added.

Part of the proceeds are earmarked to finance all or part of the trust’s acquisition of a one-third interest in Waterway Point, announced Thursday, and to partly pay off bridging loans used to acquire an 18.8 percent stake in PGIM Real Estate AsiaRetail Fund, the filing said.

 

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