CapitaLand China Trust prices private placement at bottom end of price range

About $146.2 million of the gross proceeds will be used to finance part of CapitaLand China Trust's proposed acquisition of four China logistics assets.
About $146.2 million of the gross proceeds will be used to finance part of CapitaLand China Trust's proposed acquisition of four China logistics assets.PHOTO: CAPITALAND INVESTMENT

SINGAPORE (THE BUSINESS TIMES) - CapitaLand China Trust (CLCT) on Wednesday priced its private placement at $1.165 per new unit, which is the bottom end of the price range.

The China-focused real estate investment trust (Reit) also exercised its upsize option fully, bringing the total amount raised to $150 million and the total number of units to be issued to 128.8 million.

The placement was also oversubscribed and saw good participation from new and existing institutional and other accredited investors, its manager said in a bourse filing.

About $146.2 million of the gross proceeds will be used to finance part of CLCT's proposed acquisition of four China logistics assets announced on Tuesday. The remainder will be used to pay estimated fees and expenses incurred in connection with the private placement.

The issue price of $1.165 represents a discount of about 6.9 per cent to CLCT's volume-weighted average price of $1.2509 per unit for trades done on Oct 11, up to the time the placement agreement was signed on Oct 12.

On Tuesday, the manager said CLCT will spend $297.7 million to acquire four assets in Shanghai, Kunshan, Wuhan and Chengdu, in its first foray into the China logistics sector. The Reit in September last year expanded its investment mandate beyond the retail sector.

DBS Bank, JPMorgan and HSBC were the joint global coordinators and bookrunners for the private placement. CLCT's manager expects the new units to begin trading at 9am on Oct 21.

The manager on Wednesday morning lifted its trading halt called on Tuesday. Units of CLCT closed flat at $1.25 on Monday.