SPH REIT’s private placement of 156.65 million new units met with strong demand, pricing at S$1.050 a unit, the middle of its indicative range of S$1.031 to S$1.075, to raise around S$164.5 million, the REIT said in a filing to SGX Friday.
“The private placement was multiple times covered and drew strong participation from new and existing institutional investors,” the REIT said.
The issue price of S$1.050 marks a discount of around 5.5 percent to the volume weighted average price of S$1.11 for all trades on Wednesday, SPH REIT said.
The REIT requested the trading halt on its shares be lifted.
SPH REIT said it would pay a cumulative distribution estimated at 1.37 Singapore cents to 1.41 Singapore cents for the 1 September to 1 December period, with the new units expected to be issued 2 December.
The proceeds are earmarked to partially fund the acquisition of the Westfield Marion Shopping Centre located in South Australia, SPH REIT said.
The acquisition will be funded by the proceeds of the S$300.0 million of perpetual securities issued on 30 August 2019, debt and equity, the filing said.
Credit Suisse (Singapore), HSBC’s Singapore branch and OCBC were the joint lead managers and underwriters, the filing said.