Soilbuild REIT launches preferential offering to raise around S$102 million

Singapore 50 dollar bill

This article was originally published on Thursday, 22 August 2019 at 8:50 A.M. SGT; it has since been updated to include more details.

Soilbuild Business Space REIT has launched a preferential offering of 192.14 million new units at S$0.53 each to raise gross proceeds of around S$101.8 million, the REIT said in a filing to SGX before the market open Thursday.

The new units will be issued on a basis of 18 new units for every 100 existing units, the REIT said.

The issue price is a discount of around 8.4 percent to the volume weighted average price of S$0.5788 for trades on Wednesday, the REIT said.

The gross proceeds are earmarked to partially fund the proposed acquisition of a property at 25 Grenfell Street in Adelaide, Australia, the REIT said.

“After consulting the joint underwriters and taking into account the prevailing market conditions and interest rate environment, the impact on Soilbuild REIT’s capital structure and distributions per unit (DPU), the manager believes that the preferential offering is an overall beneficial method of raising funds to finance the proposed acquisition and provides an opportunity for existing unitholders to participate in the growth of Soilbuild REIT,” the filing said.

The offering will be fully underwritten by joint underwriters CGS-CIMB Securities (Singapore), DBS Bank, RHB Securities Singapore and Soochow CSSD Capital Markets (Asia), the REIT said.

The books closure date for eligibility is 29 August, while the opening date for the offering is 3 September and the last date for acceptance and payment is 11 September, the filing said. The new units are expected to be listed on 19 September, the REIT said.

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