Retail landlord SPH Reit has established a $1 billion multi-currency debt issuance programme, with part of the proceeds earmarked for a possible acquisition.

The Reit's manager, SPH Reit Management, is conducting due diligence on the potential acquisition. "Discussions... are still preliminary and there can be no assurance that the acquisition will materialise," the manager said.

The debt programme involves the Reit issuing notes and perpetual securities. Detailed terms and conditions, including pricing, will be outlined in the next one to two days. Net proceeds will be used for general working capital, capital expenditure, corporate requirements such as acquisitions and investments, and refinancing borrowings.

The Reit's portfolio includes local shopping centres Paragon, The Clementi Mall and The Rail Mall, and an 85 per cent stake in Figtree Grove Shopping Centre south of Sydney.

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

The Reit's units closed 1.9 per cent up at $1.09 yesterday.