ESR-REIT sets price for private placement at bottom of range

Singapore two-dollar bills

ESR-REIT set the price for its private placement at S$0.515, the bottom of the S$0.515 to S$0.525 range, after a book-building process, the REIT said in a filing to SGX Tuesday.

The upsize option was exercised in full, and a total of 194.17 million new units will be issued in the placement, bringing the gross proceeds to around S$100 million, ESR-REIT said.

The private placement was around 2.5 times covered, with strong participation from new and existing institutional and other investors, the REIT said.

The S$0.515 per unit price is an around 8.3 percent discount to the volume weighted average price of S$0.5616 for all trades on Friday, the filing said.

ESR-REIT said its private placement and preferential offering were expected to raise a combined S$150 million, with around S$44.4 million earmarked for acquiring a property at 48 Pandan Road, S$45.7 million for finance asset enhancement at 7000 Ang Mo Kio Avenue 5 and UE BizHub EAST and around S$56.8 million for repaying existing indebtedness.

ESR-REIT requested Tuesday the trading halt on its shares be lifted.

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