Frasers Logistics Trust prices private placement at top of range on strong demand

Singapore two-dollar billsSingapore two-dollar bills

Frasers Logistics & Industrial Trust priced its private placement of 220 million new units at S$1.173 each, raising gross proceeds of around S$258.1 million, the REIT said in a filing to SGX Wednesday.

The pricing was at the top of the S$1.143 to S$1.173 indicative range after the offering was around 3.2 times subscribed on strong demand from new and existing institutional investors, the filing said.

The issue price is a 3.2 percent discount to the volume weighted average price of S$1.2122 for Tuesday, Frasers Logistics Trust said.

“We are delighted by the overwhelming response to our private placement, which is reflective of investors’ confidence in FLT,” Robert Wallace, CEO of the REIT manager, said in the statement. “The proceeds raised will fund our proposed acquisition of interests in 12 prime logistics properties in Germany and Australia. The proposed acquisition will further deepen FLT’s presence in the two attractive logistics
markets.”

The new units are expected to begin trading on SGX on 8 August, the trust said.

DBS Bank, Citigroup Global Markets Singapore, Merrill Lynch (Singapore) and OCBC were the joint lead managers and underwriters for the placement, the trust said.

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