CapitaLand Integrated Commercial Trust launches private placement to raise at least S$200M

CapitaLand Integrated Commercial Trust (CICT) entered a deal to acquire the 66 Goulburn Street property in Sydney, Australia, in December 2021. Credit: CapitaLandCapitaLand Integrated Commercial Trust (CICT) entered a deal to acquire the 66 Goulburn Street property in Sydney, Australia, in December 2021. Credit: CapitaLand

CapitaLand Integrated Commercial Trust (CICT) has launched a private placement of 103.63 million new units to institutional, accredited and other investors for S$1.93 to S$1.987 each to raise at least S$200 million, the trust said in a filing to SGX Tuesday.

The indicative range represents a discount of 3.7 percent to 6.1 percent to the volume weighted average price (VWAP) of S$2.0561 a unit for trades on Monday, the filing said.

Around S$150 million of the proceeds will be used to partially finance the acquisition of two Australia properties, the filing said.

On Friday, CapitaLand Integrated Commercial Trust (CICT) said it entered a deal to acquire two Grade-A office buildings in Sydney, Australia, from CapitaLand Real Estate Holdings (CLA) for A$330.7 million (S$330.7 million).

“Despite the evolving pandemic situation, this is an opportune time for CICT to enter Australia, given its attractive office market underpinned by healthy economic fundamentals in the medium to long term, and expected recovery as the country emerges from Covid-19 restrictions,” Teo Swee Lian, chairman of CICT’s manager, had said in the statement on Friday.

The trust also said Friday the acquisitions would recycle the capital from its divestment of its 50 percent interest in the One George Street property.

On a pro forma basis, the annualised distribution per unit (DPU) for the first half of 2021 would have been 10.42 Singapore cents, up 1.9 percent from 10.23 Singapore cents, CICT estimated.

Around S$45.9 million of the proceeds will be used to partially fund acquisitions in Singapore and other developed markets, repayment and refinancing of debt and/or capital expenditure and asset enhancement initiatives, CICT said in the filing Tuesday.

Existing unitholders will receive an advanced distribution of 4.80 Singapore cents to 4.90 Singapore cents, based on an expected listing date of 16 December for the new units, the filing said.

J.P. Morgan (S.E.A.) and UOB are the joint bookrunners and underwriters, which will either procure subscriptions for the shares or will subscribe for the units, the filing said.