COMMERCIAL PROPERTY | Staff Reporter, Singapore

Ascendas Reit prices $452m placement at $2.54 per unit

The firm will use $250m of the proceeds to partially fund a UK logistics portfolio.

Ascendas Real Estate Investment Trust (REIT) priced the private placement of 178 million new units between $2.528 and $2.606 for a total of 452.1m, an announcement revealed.

The firm made DBS and JP Morgan as the joint lead managers and underwriters of the placement which had been oversubscribed approximately 2.2 times by new and existing, institutional, accredited and other investors.

According to the firm, the 55.3% or $250m from the total proceeds will be utilised to partially fund the acquisition of a second UK logistics portfolio. Meanwhile, $109m will go to partially fund the development of a build-to-suit facility located in Singapore.

Moreover, $88.9m will be used for debt repayment and future acquisitions whilst about $4.2 m will be utilised to pay the estimated fees and expenses in connection with the private placement.

The new units are expected to start trading on the Singapore Exchange Securities Trading (SGX-ST) on 18 September.

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