SINGAPORE - CapitaLand Commercial Trust (CCT) has fixed the issue price of its $220 million private placement at $2.095 per new unit, with the placement being five times subscribed, it said on Thursday morning (July 18).

The private placement, which CCT's manager says drew "strong demand" from new and existing institutional, accredited and other investors, will see 105.0 million new units being issued.

The issue price of $2.095 is a discount of around 3.7 per cent to the volume-weight average price (VWAP) of $2.1762 per unit for trades done on the Singapore Exchange (SGX) on July 17, the market day which the placement agreement was signed.

Trading of the new units on SGX is expected to start on July 29, 9am. CCT's manager said it would make a formal application to SGX for the listing, dealing and quotation of the new units on the bourse's main board.

On Wednesday night, CCT's manager said of the $220 million to be raised, the bulk - $216.7 million - would be used to partially fund the acquisition of a 94.9 per cent interest in the holding companies of a freehold office building in Frankfurt, Germany.

About $3.3 million, which is about 1.5 per cent of the private placement gross proceeds, will be used to pay the estimated transaction-related expenses incurred in connection with this fundraising exercise.

DBS Bank and JPMorgan (SEA) are the joint bookrunners and underwriters for the proposed private placement.

CCT units closed one cent or 0.46 per cent lower at $2.17 on Wednesday before the announcement on the private placement came out.