ESR-REIT preferential offering meets strong demand

Singapore two-dollar bills

ESR-REIT’s preferential offering met strong demand from unitholders, coming in around 3.6 times subscribed, raising S$49.6 million, the industrial REIT said in a filing to SGX Tuesday.

The offering of 124.1 million new units was made to existing unitholders on the basis of 32 preferential offering units at S$0.40 each for every 1,000 existing units, the filing said.

Valid acceptances took up 61.9 percent of the preferential offering, while excess applications came in at 302.5 percent of the offering’s shares, the filing said.

The offer price was an around 9.2 percent discount to the volume weighted average price of S$0.4403 on 26 July, the filing said.

The new units are due to begin trade on 26 August.

The preferential offering followed a private placement in May which raisedS$100 million.

“Altogether, the demand for both the private placement and preferential offering was approximately S$517.4 million or about 3.5 times the total offer size. We are very grateful to our unitholders for their continued support and confidence in us as we execute our growth initiatives to optimise our portfolio and strengthen our financial flexibility,” Adrian Chui, CEO and executive director of the REIT’s manager, said in the statement.

The proceeds of the preferential offering and private placement are earmarked to partially finance the acquisition of a ramp-up logistics facility at 46A Tanjong Penjuru in Singapore, partially funding upcoming asset enhancement indicatives for 7000 Ang Mo Kio Avenue 5 and 16 Tai Seng Street, and partially repaying existing debt used to fund the acquisition of 10 percent in ESR Australia Logistics Partnership, the filing said.