CapitaLand Commercial Trust prices private placement near top of range

Singapore’s central business district (CBD) with CapitaLand and Singtel buildings; taken September 2018.CapitaLand and Singtel buildings in Singapore’s central business district.

CapitaLand Commercial Trust priced its private placement at S$2.095 a unit, near the top of its range after strong demand, the trust said in an SGX filing Thursday before the market open.

The placement will be of 105.01 million new units, which will raise gross proceeds of S$220 million, the trust said.

It added the offering was 5.0 times covered amid strong demand from new and existing institutional, accredited and other investors.

The indicative pricing range was S$2.043 to S$2.105, while the placement had expected to include 104.51 million to 107.68 million new units.

The placement price of S$2.095 is a discount of around 3.7 percent to the volume weighted average price of S$2.1762 on Wednesday, CCT said. CapitaLand Commercial Trust’s units ended Wednesday down 0.46 percent at S$2.17.

The new units are expected to be listed on SGX on 29 July, CCT said.

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 had said Wednesday.

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.

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