SPH Reit launches $1b multicurrency debt programme; in talks for potential acquisition

The Paragon in Orchard Road is one of four retail properties in SPH Reit's portfolio.
The Paragon in Orchard Road is one of four retail properties in SPH Reit's portfolio.PHOTO: DP ARCHITECTS

SINGAPORE - Retail landlord SPH Reit has established a $1 billion multicurrency debt issuance programme, with part of the proceeds to be potentially used for a possible acquisition.

The Reit's manager, SPH Reit Management, is currently conducting due diligence on the potential acquisition.

"Discussions about the potential acquisition are still preliminary and there can be no assurance that the acquisition will materialise at all," the manager said.

Under the programme, the Reit will issue notes and perpetual securities. Detailed terms and conditions, including pricing, of these securities are set out in an information memorandum, which will be released in the next one to two days.

Overall, net proceeds from the issue of securities under the debt programme will be used for general working capital, capital expenditure, corporate requirements such as acquisitions and investments, and/or refinancing existing borrowings.

HSBC, Singapore Branch, and OCBC are the arrangers and dealers of the programme.

The Reit's portfolio includes Singapore malls Paragon, The Clementi Mall and The Rail Mall. It also has an 85 per cent stake in Australia's Figtree Grove Shopping Centre.

SPH Reit's sponsor, Singapore Press Holdings, publishes The Straits Times.

Units of the mainboard-listed Reit were unchanged at $1.07 as at 9.08 am.