Jackson Square, a property in Viva Industrial Trust's portfolio. (Photo: REITsWeek)Jackson Square, a property in Viva Industrial Trust's portfolio. (Photo: REITsWeek)

Industrial and business park landlord Viva Industrial Trust (VIT) (SGX:T8B) announced on 11 December that it has fully utilised proceeds from a private placement to partially repay its outstanding revolving credit facility of SGD36 million.

The move to pare down its existing debt is said to have reduced the trust’s aggregate leverage from 45.9% to 44.1%.

VIT announced first announced in November 2014 that it will be raising SGD15.6 million through a private placement of its stapled securities to Tan Phong Guan, former owner of Jackson Square and Jackson Design Hub.

The placement exercise follows the completion of VIT’s acquisition of Jackson Square and Jackson Design Hub at an aggregate purchase price of SGD111.5 million.

Under the terms of the subscription agreement, VIT will place out 20 million new VIT stapled securities to Tan at SGD0.78 per unit. The placement price represents a 2.5% discount to the volume weighted average price for trades done on 21 November 2014.

Units of VIT last changed hands on the Singapore Exchange at SGD0.80.

Jackson Square and Jackson Design Hub will be Viva Industrial Trust's first acquisitions since IPO.
Jackson Square and Jackson Design Hub will be Viva Industrial Trust's first acquisitions since IPO.

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.