Manulife US REIT preferential offering meets solid demand

U.S. one-dollar and five-dollar currency notes; taken September 2018.U.S. one-dollar and five-dollar currency notes; taken September 2018.

Manulife US REIT’s preferential offering was oversubscribed, attracting acceptances and excess applications for 147 percent of the total 72.86 million new units offered at US$0.86 each, the REIT said in a filing to SGX Tuesday.

The REIT received valid acceptances for 60.98 million new units, or 83.7 percent of the total, and excess applications for 46.09 million units, or 63.3 percent of the total, the REIT said.

The offering was on the basis of 52 new units for every 1,000 existing units held, and it had been priced at the top of its US$0.833 to US$0.86 range, MUST has said.

Gross proceeds were around US$62.7 million, which together with the around US$80 million raised in a private placement, brought the equity fundraising total to around US$142.7 million, MUST said.

MUST said the new units are expected to be listed on SGX on 18 October.

Last month, the REIT said 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.

Units of the REIT had closed at US$0.91 each, down 0.55 percent Monday.

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