CapitaLand Commercial Trust launches private placement to raise around S$220 million

Six Battery Road with CapitaLand and CapitaLand Commercial Trust signage; taken October 2018.Six Battery Road with CapitaLand and CapitaLand Commercial Trust signage; taken October 2018.

CapitaLand Commercial Trust proposed a private placement of 104.51 million to 107.68 million new units to eligible institutional, accredited and other investors to raise around S$220 million, the trust said in a filing to SGX late Wednesday.

The pricing of the new units was expected in a S$2.043 to S$2.105 range, the filing said. That marked a discount of around 3.3 percent to 6.1 percent to the volume weighted average price for trades on Wednesday, the trust said.

CapitaLand Commercial Trust’s units ended Wednesday down 0.46 percent at S$2.17.

Around S$216.7 million of the proceeds are earmarked to partially finance the acquisition of a 94.9 percent interest in the Main Airport Center property in Frankfurt, the trust said.

On Wednesday before the market open, CCT had announced the deal to acquire the Frankfurt property from CapitaLand and Lum Chang Holdings for 251.5 million euros, or around S$387.1 million.

At a press conference Wednesday, the trust had said it was still determining how it would finance the acquisition, and had floated the possibility of using all debt, citing the low interest rates in Europe.

DBS Bank and J.P. Morgan (S.E.A.) were the joint bookrunners and underwriters for the proposed placement, the filing said.

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