Sabana REIT's property near Serangoon, New Tech Park. (Photo: REITsWeek)Sabana REIT's flag property near Serangoon, New Tech Park. (Photo: REITsWeek)

Sabana REIT is looking to raise gross proceeds of approximately SGD80.2 million (USD55.3 million) via a rights issue of 310,712,244 new units.

42 new units will be offered for every 100 existing units on the date and time of book closure, which has tentatively be set on 29 December at 1700 hours, said Sabana REIT in a statement on 20 December.

Each rights issue will be priced at SGD0.258. At the closing price of SGD0.505 per unit on 19 December, the price represents a discount of approximately 48.9%.

HSBC, Maybank Kim Eng, and UOB have been appointed as the joint lead managers and underwriters for the exercise, and Sabana REIT’s sponsor and manager have each committed to subscribe in full to their respective allotment of rights units.

Proceeds from the exercise will be mainly (95.8%) deployed towards three property acquisitions that were announced earlier this year, and these are namely of 107 Eunos Avenue 3, 72 Eunos Avenue 7, and 47 Changi South Avenue 2.

Balance of the proceeds will be used towards paying the expenses relating to the rights issue, said the Singapore-listed industrial REIT.

Units of Sabana REIT last changed hands on the Singapore Exchange at SGD0.505.

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.