AA Reit launching private placement to raise at least S$50m

The trust will issue between 37.2 million and 38.3 million new units at an issue price of between S$1.305 and S$1.345 per new unit.
The trust will issue between 37.2 million and 38.3 million new units at an issue price of between S$1.305 and S$1.345 per new unit.PHOTO: ST FILE

SINGAPORE - AIMS AMP Capital Industrial Reit (AA Reit) is launching a private placement exercise to raise gross proceeds of at least S$50 million.

The trust will issue between 37.2 million and 38.3 million new units at an issue price of between S$1.305 and S$1.345 per new unit.

In a filing with the Singapore Exchange (SGX) late Tuesday (Nov 21), AA Reit said: "The proceeds will primarily be used to partially repay AA Reit's existing borrowings to reduce aggregate leverage and create additional debt headroom for future potential acquisitions, asset enhancement initiatives (AEIs) and other development opportunities that may be identified by the manager as well as for AEIs and balance payments on AA Reit's recent development projects."

The issue price range of between S$1.305 and S$1.345 per new unit represents a discount of between 4.1 per cent and 6.9 per cent to the volume weighted average price of S$1.402 per unit, for trades done on the SGX on Tuesday.

The new units are expected to be issued and commence trading on the SGX on Dec 1, 2017.