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Keppel-KBS US REIT has nearly completed its latest exercise to issue 186,236,224 rights units for US$0.5 apiece to raise gross proceeds of about US$93.1 million (S$128.08 million), revealed a recent SGX filing.
At the close of the rights issue on 19 November, it received applications for a total of 238,290,766 rights units. While there were excess applications involving 63,003,351 rights issue, only 175,287,415 rights units have been validly accepted out of the original rights issue amount of 186,236,224.
“The balance of 10,948,809 rights units which were not validly accepted will be allotted to satisfy excess applications. In such allotment, preference will be given to the rounding of odd lots (if any) followed by allotment to unitholders who are neither directors nor substantial unitholders,” said Keppel-KBS US REIT Management.
On the other hand, directors and substantial unitholders will be given the lowest priority, said the trust manager, adding that the rights units are expected to be issued on or about 26 November.
Under the terms of the issuance, 295 rights units will be issued to unitholders for every 1,000 existing units in the trust.
The deal’s joint lead underwriters consist of DBS Bank and United Overseas Bank (UOB). The two aforementioned banks and Credit Suisse (Singapore) are also the joint underwriters.
The US$93.1 million gross proceeds will be used to partly fund the acquisition of the Westpark Portfolio (pictured), a business campus comprising 21 freehold buildings with a land area of over 41 acres and premises spanning 778,472 sq ft in the US state of Washington.
Specifically, US$89.7 million will be utilised for the deal, US$3.4 million will be set aside for expenses related to the issuance, while any remainder will be allocated for general corporate purposes.
Previously, Keppel-KBS US REIT had agreed to buy the property for US$169.4 million on 24 September.
Romesh Navaratnarajah, Senior Editor at PropertyGuru, edited this story. To contact him about this or other stories, email romesh@propertyguru.com.sg
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