CapitaLand China Trust prices private placement at bottom of range in oversubscribed deal

CapitaLand China Trust's 51 percent-owned Rock Square mall, located in Guangzhou in China. Credit: CapitaLand China TrustCapitaLand China Trust's Rock Square mall, located in Guangzhou in China. Credit: CapitaLand China Trust

CapitaLand China Trust has priced its private placement at S$1.165, the bottom of the S$1.165 to S$1.199 indicative range, in an oversubscribed deal which saw the upsize option exercised in full, the REIT said in a filing to SGX Wednesday.

“The private placement was oversubscribed (including the upsize option) and saw good participation from new and existing institutional and other accredited investors,” the trust said in the statement.

With the exercise of the upsize option, a total of around 128.76 million new units will be issued, raising gross proceeds of around S$150 million, the trust said.

The issue price represents an around 6.9 percent discount to the volume weighted average price of S$1.2509 a unit for trades on Tuesday, the filing said.

The proceeds are largely earmarked to finance acquisitions.

CapitaLand China Trust plans to acquire a portfolio of four logistics assets, located in the  logistics hubs of Shanghai, Kunshan, Wuhan and Chengdu for around 1.68 billion yuan, or around S$297.7 million, marking its entry into a new property segment, the China-focused trust said in a separate filing to SGX Tuesday.

Trading of the new units is expected to begin on 21 October, the filing said.

The joint global bookrunners and coordinators of the deal are DBS Bank, J.P. Morgan (S.E.A.) and HSBC’s Singapore branch, the filing said.

CapitaLand China Trust units ended Wednesday down 2.4 percent at S$1.22.