Ascendas Hospitality Trust raises $50m from placement of new units
Published on Apr 1, 2014 8:36 AM
Ascendas Hospitality Trust has completed a private placement of 73.5 million new stapled securites at 68 cents apiece, raising $50 million in all, its managers Ascendas Hospitality Fund Management and Ascendas Hospitality Trust Management said on Tuesday.
The price marks a discount of about 3.5 per cent to the trust's adjusted volume weighted average price of 70.5 cents per stapled security on Mar 28 and Mar 31 until the agreement was signed.
The trust will use the proceeds mainly to fund part of its acquisition of Osaka Namba Washington Hotel Plaza in Japan, which was announced last week.
The proceeds will also be partly used to pay for expenses relating to the acquisition and the private placement, as well as to repay existing debt.