ESR-REIT closed its nonrenounceable preferential offering, with the industrial real estate investment trust receiving valid acceptances and excess applications for 448,469,872 new units, representing about 170.6% of the total number of new units available under the offering.
The company said it will allot 64,961,262 new units from the provisional allotments that were not validly accepted by entitled unit holders and those of ineligible unit holders to satisfy applications for excess new units.
In all, ESR-REIT will issue 262,849,614 new units at 54 Singaporean cents apiece to raise about S$141.9 million in gross proceeds. It plans to use about S$140.9 million to pay down debt facilities used to partially fund the acquisition of an interest in a special-purpose vehicle that owns the 7000 Ang Mo Kio Ave. 5 property in Singapore.
Immediately following closing of the offering, the sponsor, ESR Cayman Ltd., will have a total deemed interest in 210,711,874 units, representing roughly 13.3% of the total number of 1,583,701,947 units in issue after the listing of the new units. Mitsui & Co. Ltd. will have a total interest in 25,201,075 units, or about 1.6% of the total number of units.
ESR-REIT expects the new units to be listed and quoted on the Singapore Exchange Securities Trading Ltd., effective March 28.
As of March 23, US$1 was equivalent to S$1.31.