Lendlease Reit to raise at least $573.8m to fund Jem acquisition
Sign up now: Get ST's newsletters delivered to your inbox
The private placement's issue price will be between 72.5 cents and 74 cents.
PHOTO: ST FILE
Vivienne Tay
SINGAPORE (THE BUSINESS TIMES) - The manager of Lendlease Global Commercial Reit (Lendlease Reit) is proposing to raise at least $573.8 million to partly finance the real estate investment trust's (Reit) acquisition of the remaining interest in Jem mall.
The fund-raising exercise comprises a private placement of at least 448.3 million new units, subject to an upsize option, and a non-renounceable preferential offering of around 345.6 million new units, the manager said in a bourse filing on Tuesday (March 22).
The private placement's issue price will be between 72.5 cents and 74 cents. The upsize portion will be for 103.4 million additional units to raise additional gross proceeds of up to $75 million.
The issue price range for the private placement represents a discount of between 7.1 per cent and 9 per cent to the Reit's volume-weighted average price (VWAP) of 79.64 cents per unit on March 21 - the last market day before the underwriting agreement was signed.
Meanwhile, the preferential offering, which aims to raise about $248.8 million from existing eligible unit holders, will be priced at 72 cents per new unit on the basis of 29 new units for every 100 existing units. This represents a discount of about 9.6 per cent to the March 21 VWAP.
Reit sponsor Lendlease Corporation has given an irrevocable undertaking to, through its relevant entities, accept, subscribe and pay in full its total provisional allotment of preferential offering units. It will also subscribe up to $117.8 million worth of excess preferential offering units which are not taken up by other unit holders.
About $564.9 million of total gross proceeds will be used to part-finance the total acquisition cost of Lendlease Reit's Jem acquisition. The rest will be used to pay the estimated professional and other fees and expenses incurred by the equity fund raising.
Citigroup Global Markets Singapore, DBS, OCBC and UOB have been appointed joint bookrunners for the equity fund raising.
Lendlease Reit's manager called for a trading halt before the market opened on Tuesday. The counter last closed flat at 79.5 cents on Monday.
