Viva Industrial Trust to raise $15.6m through private placement

After the acquisition of Jackson Square and Jackson Design Hub.

Viva Industrial Trust will be raising $15.6 million through a private placement of its stapled securities to Tan Phong Guan, former owner of Jackson Square and Jackson Design Hub.

The placement exercise follows the completion of VIT's acquisition of Jackson Square and Jackson Design Hub at an aggregate purchase price of $111.5 million, which is at a 3.4% discount to the aggregate market valuation of $115.4 million accorded to the properties by independent valuer, Suntec Real Estate Consultants.

Under the terms of the subscription agreement, VIT will place out 20,000,000 new stapled securities to Tan at $0.78 per stapled security. The Placement Price represents a 2.5% discount to the volume weighted average price for trades done on 21 November 2014.

Upon completion of the placement exercise,Tan, who presently holds 1,000,000 VIT stapled securities, will own 21,000,000 VIT stapled securities, representing approximately 3.39% of the enlarged total number of VIT stapled securities. 

VIT plans to use the proceeds from the placement exercise to pare down its existing debt and reduce its pro forma agregate leverage from 45.9% to 4.1% post-placement.