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by Cheryl Tay
CapitaMall Trust (CMT) has raised gross proceeds of S$250 million through a private placement of 125 million new units at an issue price of S$2.00 per unit, according to its manager CapitaMall Trust Management Limited (CMTML).
With strong market demand, the private placement has been oversubscribed and the number of new units to be issued has been increased from the original 100.503 million to 125 million units.
Moreover, the proceeds will be mainly used to finance capital expenditure and asset enhancement initiatives for CMT’s properties. The amount could also be used as general and / or corporate working capital, as well as to refinance existing debts of CMT and its subsidiaries.
“We are pleased to receive a strong response from existing and new investors and would like to thank all of them for their continued support. This exercise is consistent with the recent refinancing to extend our overall debt maturity profile by putting in place more permanent source of capital,” noted Wilson Tan, CEO of CMTML.
“This equity placement also allows us to optimise our capital structure, thereby increasing our debt headroom and putting us into a better position to embark on future opportunities to boost unitholders’ returns.”
Cheryl Tay, Editor of CommericalGuru, wrote this story. To contact her about this or other stories, email cheryltay@propertyguru.com.sg
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