Singapore-listed Manulife US REIT is seeking gross proceeds of about US$197.2 million from its fully underwritten, pro rata and nonrenounceable preferential offering of 227,935,981 new units at an issue price of 86.5 cents apiece.
The units are being offered to eligible unit holders on the basis of 22 new units for every 100 Manulife US units held. The issue price reflects a roughly 7.9% discount to the office-focused trust's 93.91 cents volume weighted average price per unit as of May 15.
Manulife US plans to use the amount raised from the offering to bankroll its planned acquisitions of the office building at 1750 Pennsylvania Ave. NW, in Washington, D.C., and the Phipps Tower at 3438 Peachtree Rd. in Atlanta. The trust said it secured in-principle approval from the Singapore stock exchange for the offering.
In line with the issuance, the first pure-play U.S. office REIT listed in Asia said it will close its transfer books and register of unit holders to determine the provisional allotment of new units on May 24 at 5 p.m., Singapore time.
DBS Bank Ltd. and CLSA Singapore Pte. Ltd. are the joint lead managers and underwriters of the offering.