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About $99.6 million, or 97.8 percent of the gross proceeds, will be partially used to fund Soilbuild REIT’s acquisition of a freehold Grade A office building at 25 Grenfell Street, Adelaide, Australia.
Soilbuild Business Space REIT (Soilbuild REIT) has launched a fully underwritten, pro-rata and non-renounceable preferential offering to raise around $101.8 million to fund a property acquisition in Australia.
In an SGX filing, the REIT’s manager revealed that about 192.1 million new units will be issued at an issue price of $0.530 per unit, which is a discount of about 8.4 percent to the volume weighted average price of $0.5788 on 21 August.
Eighteen new units will be issued to unitholders for every 100 existing units held as at 5pm on 29 August.
“Eligible unitholders are at liberty to accept or decline, in part or in full, their provisional allotments of new units and are eligible to apply for additional new units in excess of their provisional allotments under the preferential offering,” said the manager.
It noted that Lim Chap Huat – who owns about 9.9 percent of the existing units – as well as Lim Han Feng, Lim Han Qin and Lim Han Ren – who each owns 6.6 percent of the existing units – have provided an irrevocable undertaking to accept their total provisional allotment of new units under the offering.
Their commitment under the undertaking represents about 29.5 percent of the new units.
About $99.6 million, or 97.8 percent of the gross proceeds, will be partially used to fund Soilbuild REIT’s acquisition of a freehold Grade A office building at 25 Grenfell Street, Adelaide, Australia.
The remaining $2.2 million of the proceeds will be used to pay the fees and expenses relevant to the offering.
Since the offering is made on a non-renounceable basis, “the provisional allotment of new units cannot be renounced in favour of a third party or traded on the SGX-ST”.
The preferential offering is fully underwritten by the joint underwriters– namely, CGS-CIMB Securities (Singapore), DBS Bank, RHB Securities Singapore and Soochow CSSD Capital Markets (Asia).
Victor Kang, Digital Content Specialist at PropertyGuru, edited this story. To contact him about this or other stories, email victorkang@propertyguru.com.sg
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