Keppel Pacific Oak US REIT private placement meets strong demand

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

Keppel Pacific Oak US REIT’s private placement of 104.29 million new units met with strong demand, pricing at US$0.725, the top of the US$0.701 to US$0.725 indicative range, in an offering than was more than four times subscribed, the REIT said late Thursday.

The offering saw strong demand from new and existing institutional and other accredited investors, KORE said in a filing to SGX.

The issue price is a discount of 4.8 percent to the volume weighted average price of US$0.7615 on trades on Wednesday, KORE said.

The offering raised gross proceeds of US$75.6 million

The proceeds are earmarked to fund the acquisition of One Twenty Five, an office complex in Dallas, Texas, KORE said.

Keppel Capital Investment Holdings and KBS SOR Properties, which hold around 6.89 percent of KORE each, have each subscribed for 7,186,000 new units, the filing said.

DBS Bank’s Treasury Investments unit has been allocated 8 million units under the private placement, KORE said.

Trading in the new units expected to begin on 29 October, KORE said.

DBS Bank and Credit Suisse (Singapore) were the joint bookrunners and underwriters, the filing said.

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