Manulife US REIT has launched a private placement and preferential offering to raise around US$142.1 million to partially fund the acquisition of a California property, the REIT said in a filing to SGX Thursday.
The REIT said Thursday it had entered a deal to acquire the Class-A office building in Sacramento, California, from 400 Capitol Mall Owner for around US$198.8 million.
The private placement of new units to institutional, accredited and other investors at US$0.849 to US$0.876 each is expected to raise around US$65 million, subject to an upsize option, which could increase proceeds to US$80 million, Manulife US REIT, or MUST, said.
The price range represents a discount of between 3.6 percent to 6.6 percent to the volume weighted average price of US$0.9089 Wednesday, MUST said.
Up to around 94.2 million new units will be issued under the private placement, if the upsize option is fully exercised, the filing said.
The placement pricing will be announced after a book building process, the filing said.
The preferential offering of new units will be at US$0.833 to US$0.86 each to raise around US$77.1 million, or less if the upsize option is triggered, the filing said.
The price range represents a discount of between 5.4 percent and 8.4 percent to the volume weighted average price of US$0.9089 Wednesday, MUST said.
The new units issued for the private placement are expected to begin trading on 30 September, the REIT said. It added preferential offering is expected to open on 2 October and close on 10 October, with the new units to be listed on 18 October.
Citigroup Global Markets Singapore and DBS Bank have been appointed as the joint lead managers and underwriters, MUST said.