Singapore-listed CapitaLand Commercial Trust priced its private placement of 130,000,000 new units at the top end of the S$1.631-per-unit to S$1.676-per-unit indicative price range.
The office-focused real estate investment trust said the placement was oversubscribed 3.1x at closing. In a news release, the REIT reiterated that the S$1.676-per-unit price of the offering represents a roughly 3.2% discount to its S$1.7306 volume-weighted average price per unit as of May 16.
CapitaLand Commercial is expecting gross proceeds of about S$217.9 million from the placement. It will use a portion of the anticipated amount to finance its €342.7 million contribution to the planned acquisition from PATRIZIA Immobilien AG of the €356.0 million Gallileo commercial property in Frankfurt. The purchase, which will mark the trust's maiden foray into Europe, is being done in partnership with its parent, CapitaLand Ltd.
Units to be issued as part of the private placement are expected to be listed on the Singapore stock exchange May 28.
Citigroup Global Markets Singapore Pte. Ltd., DBS Bank Ltd. and J.P. Morgan (SEA) Ltd. are the joint book runners and underwriters of the offering.
As of May 17, US$1 was equivalent to S$1.34.