OCBC maintains ‘Buy’ on Frasers industrial REIT after placement exercise


OCBC Investment Research has maintained a ‘Buy’ rating, and upgraded its fair value estimate on Frasers Logistics & Industrial Trust after factoring in effects from the REIT’s recent private placement exercise.

Frasers Logistics & Industrial Trust announced on 28 June that its placement exercise, which seeks to raise some SGD78.8 million (USD57 million) via the issue of 78 million new units, was 4.6 times subscribed despite being priced at SGD1.01 per new unit.

The issue price represents the top end of an indicative range of between SGD0.985 and SGD1.01 for the exercise.

After deducting placement fees and necessary expenses, the REIT is expected to realise net proceeds of some SGD77.2 million from the placement.

The net proceeds will be deployed towards Frasers Logistics & Industrial Trust’s proposed acquisition of seven industrial properties in Australia from its sponsor for AUD169.3 million.

Read: Frasers industrial REIT acquires seven Australian properties for AUD169.3 million

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About Author

Ridzwan Rahmat has been analysing Singapore-listed REITs and business trusts, since 2008. For disclosure purposes, Ridzwan is currently vested in Mapletree Greater China Commercial Trust, Mapletree Industrial REIT and Mapletree Logistics Trust.

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