Singapore-listed industrial business trust Viva Industrial Trust (VIT) (SGX:T8B) announced on 2 December it has issued 20 million new units of stapled securities in a private placement exercise to Tan Phong Guan, a former owner of Jackson Square and Jackson Design Hub.

VIT announced in September 2014 that it was acquiring industrial properties Jackson Square and Jackson Design Hub from Tan for SGD111.5 million. Under the terms of the subscription agreement, VIT will place out 20 million new stapled securities to Tan at SGD0.78 per stapled security, raising SGD15.6 million for the trust.

VIT has said that it plans to use the proceeds from the placement exercise to pare down its existing debt and reduce its pro forma aggregate leverage from 45.9% to 44.1% post-placement.

With the placement exercise, Tan now owns 21 million units of VIT stapled securities, representing approximately 3.39% of the enlarged total number of VIT stapled securities.

“VIT has a well-defined growth strategy of building a resilient portfolio that includes quality assets like Jackson Square and Jackson Design Hub. I am pleased to have the opportunity to participate in the trust’s long-term growth through the placement exercise”, Tan Phong Guan was quoted as saying in an official company statement on the exercise.

Units of VIT are currently listed on the Singapore Exchange at SGD0.795.