Keppel DC Reit private placement over two times subscribed

SINGAPORE - Strong investor interest has led to the private placement of Keppel DC Reit's new units being oversubscribed.

Manager Keppel DC Reit management announced on Tuesday (May 8) that the private placement was subscribed by over two times and saw strong participation from new and existing institutional, accredited and other investors.

On Monday, the Reit (real estate investment trust) announced a placement of 224 million new shares at $1.353 each, which is a 4.9 per cent discount to the volume-weighted average price of $1.4220 per share for trades last done on the Singapore Exchange on May 4.

Citigroup Global Markets Singapore and DBS Bank were joint bookrunners and underwriters for the placement.

The majority of the $303 million raised in proceeds will go towards paying for the acquisition of a new data centre in Jurong, the Reit said.

Under the placement, DBS Bank's Treasury Investments Unit has been allocated 1.35 million new units.

The trading of the new units is expected to commence at 9 am on May 16.