Singapore-listed Shari’ah-compliant REIT, Sabana (SGX:M1GU) has issued 40 million new units an issue price of S$1.00. The price offered represents a discount of about 8.25 per cent when compared to prevailing market prices for units of the REIT which are currently trading at S$1.09.

Sabana REIT hold a portfolio of industrial properties across Singapore

News of the placement follows an announcement made earlier during the month. Sabana REIT has previously indicated that it will be making the placement in order to fund the acquisition of an industrial property located in the Chai Chee industrial area of Singapore. That property has been touted to have easy access to major transportation links and a healthy lease balance.

The new units started trading on the Singapore Exchange today and will increase the total number of units in issue to 689,704,185. REITSWEEK does not expect a significant fall in prices for units of Sabana REIT that can be directly attributable to this placement exercise as the market has largely discounted the announcement in.

We will be analyzing the REIT further in the next issue of REITSWEEK with our opinion on future price movements.

By Ridzwan Rahmat

Ridzwan has been analysing REITs and business trusts since 2008, and personally manages a portfolio comprising mainly of SGX-listed REITs. He founded REITsWeek in 2013.