ESR-REIT is targeting gross proceeds of about S$127.3 million to S$141.9 million from its planned nonrenounceable preferential offering of up to about 262.8 million new units.
Entitled unit holders may buy the new units for 54 Singaporean cents apiece. The issue price is a roughly 7.1% discount to the company's unit volume weighted average price of 58.12 cents for the full Feb. 27 market day. The trust's sponsor, ESR Cayman Ltd., agreed to subscribe for up to S$125.0 million of the units to be offered.
The Singaporean company plans to use proceeds from the preferential offering to reduce the debt facilities it used to partly finance the approximately S$243.5 million cost of acquiring an 80% stake in a special purpose vehicle that owns the 7000 Ang Mo Kio Ave. 5 property in the city-state.
Books for the offering closes March 7, with eligible unit holders allowed to apply and pay for the new units March 12-20. The new units will be listed on the local bourse March 28.
RHB Securities Singapore Pte. Ltd. is the sole financial adviser and global coordinator for the offering.
As of Feb. 26 US$1 was equivalent to S$1.32.
