Units of Ascott Residence Trust (SGX:A68U) closed flat for the trading day despite the impending listing of 253 million new units and a general fall in prices across the board for Singapore REITs. Units of the REIT finished flat at S$1.17 on the Singapore Exchange.
|Ascott REIT has a strong pipeline of properties from its sponsor for future acquisitions.|
Ascott REIT had earlier announced that it was looking to raise capital via a rights issue to tap on future growth opportunities. The rights issue raised roughly S$253.7 million from an issue price of S$1 each. The rest of the funds are understood to be used to pay down debt of approximately S$204.9 million and to fund capital expenditure and asset enhancement initiatives for the REIT.
Mr Lim Jit Poh, Ascott Residence Trust Management Limited’s (ARTML) Chairman, said: “The rights issue will enhance Ascott Reit’s financial flexibility to tap future growth opportunities. It will also increase Ascott REIT's trading liquidity and enhance its credit profile".
"There is a strong pipeline of potential acquisitions from our sponsor, The Ascott Limited and third parties. We will continue to seek acquisition opportunities in key gateway cities in China, Japan, Malaysia, Australia and Europe. Ascott Reit will also continue to invest on refurbishing our properties to drive organic growth", said Mr Lim again.