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

Singapore-listed industrial and business space landlord, Viva Industrial Trust (SGX:T8B), has launched an equity fund raising exercise to raise approximately SGD110.0 million in funds.

The exercise, which is being done to fund the acquisition of three industrial properties in Singapore located at Tai Seng Avenue, Ubi Road and Pioneer Road respectively will comprise of a private placement and a preferential offering.

The private placement comprises of an issuance of up to 52,047,200 new stapled securities to institutional and other qualified investors at an issue price of SGD0.725 per new unit and will raise gross proceeds of approximately SGD37.7 million.

Meanwhile the preferential offering comprises of an issuance of 101,071,000 new stapled securities at an issue price of SGD0.715 per new unit and will raise gross proceeds of approximately SGD72.3 million. The offering will be made on the basis of one new stapled security for every seven existing units in the trust as at 5.00 p.m. on 26 November 2015.

CEO of the REIT component's manager, Wilson Ang, noted in a media statement released 18 November that major stapled securityholders have committed to subscribe up to SGD70.0 million of the preferential offering. “The financial commitment from our major stapled securityholders is a firm vote of confidence in Viva Industrial Trust’s asset quality and management team in executing its strategy”, he added.

The private placement closed on 18 November and new units made in pursuant to this will be listed on the Singapore Exchange on 27 November. The preferential offering exercise will open on 1 December and close on 9 December. Listing of new units pursuant to the preferential offering is expected to be on 17 December.

Viva Industrial Trust currently has a portfolio of five properties in Singapore - UE BizHub EAST, Technopark@Chai Chee, Mauser Singapore, Jackson Square and Jackson Design Hub with an aggregate gross floor area of 2.9 million square feet.

Units of Viva Industrial Trust ast changed hands on the Singapore Exchange at SGD0.735.

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.