Soilbuild Business Space REIT has launched a preferential offering exercise to raise some SGD59.4 million by issuing up to 94,353,672 new units.
The preferential offering units will be offered to existing unitholders at SGD0.63 a piece, representing a discount of 8.2% to the volume weighted average price of about SGD0.6865 as at 18 August 2016.
New units will be offered on the basis of one for every 10 existing units in the Singapore-listed industrial REIT.
Net proceeds raised from the exercise will be used to partially finance the proposed acquisition of Bukit Batok Connection.
Soilbuild REIT first announced in June 2016 that it was acquiring the nine-storey industrial property for about SGD96.3 million (SGD100.5 million, when including acquisition related expenses).
“The preferential offering on the back of Soilbuild REIT’s acquisition of Bukit Batok Connection will strengthen Soilbuild REIT’s balance sheet and enhance its financial flexibility”, said Roy Teo, CEO of the REIT’s manager, in a statement on 19 August.
“The enhanced financial flexibility will also create a stronger platform for further acquisition growth for Soilbuild REIT. This preferential offering allows our existing unitholders to participate in Soilbuild REIT’s growth and fund raising at an attractive price of SGD0.63 per new unit”, added Teo.
The books closure date to determine the entitlements of unitholders with respect to the exercise will be announced separately, said the REIT.
Units of Soilbuild REIT last changed hands on the Singapore Exchange at SGD0.68.