Suntec Reit is placing out up to 222.2 million new units to raise some $350 million.
The units will be placed to institutional investors at between $1.575 and $1.615 apiece.
They represent a discount of 4.07 per cent and 6.47 per cent to the volume weighted average price of $1.6839 on March 18.
The final price will be determined following a book-building exercise.
The entire amount raised, save for placement fee amounting to $8.7 million, will be used to repay existing debts.
This will lower the reit's gearing to 33.8 per cent from 38 per cent as at Dec 31 and strengthen its capital structure and credit profile.
Following the completion of the placement and refinancing of a loan due in June, Suntec Reit will have no further refinancing needs until 2015 and the weighted average term to expiry of its debt will increase from 2.4 years to 3.6 years.