CapitaLand Integrated Commercial Trust prices private placement at mid-range amid strong demand

CapitaLand Integrated Commercial Trust (CICT) entered a deal to acquire the 100 Arthur Street property in Sydney, Australia, in December 2021. Credit: CapitaLandCapitaLand Integrated Commercial Trust (CICT) entered a deal to acquire the 100 Arthur Street property in Sydney, Australia, in December 2021. Credit: CapitaLand

CapitaLand Integrated Commercial Trust (CICT) priced its private placement at S$1.96 a unit, around the middle of its S$1.93 to S$1.981 indicative range, as strong demand led to the exercise of the upsize option, the trust said in a filing to SGX early Wednesday.

With the exercise of the upsize option, CICT will issue 127.55 million new units, up from the initially planned 103.63 million units, raising around S$250 million, compared with the initially sought S$200 million, the filing said.

The private placement was oversubscribed, with strong demand from new and existing institutional, accredited and other investors, CICT said.

The issue price of S$1.96 a unit is a discount of around 4.67 percent to the volume weighted average price (VWAP) of S$2.0561 a unit for trades on Monday, the filing said.

The issue price was set after a book-building process, 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.

Around S$95.9 million of the proceeds will be used to partially fund proposed acquisitions in Singapore and other developed markets, repayment and refinancing of debt and/or capital expenditure and asset enhancement initiatives, the filing said.

The new units are expected to begin trading on SGX on 16 December, the filing said.