In the wake of a recent rights issue exercise announcement, OCBC Investment Research has upgraded Singapore-listed industrial REIT, Cache Logistics Trust, to ‘Hold’ from ‘Sell’ previously.
The REIT first announced on 5 September that it will be undertaking an underwritten and renounceable rights issue of 162.6 million new units, to raise gross proceeds of SGD102.7 million.
The rights units will be offered at a ratio of 18 rights units for every 100 existing units, with a rights issue price of SGD0.632 per rights unit.
The bulk of the gross proceeds will be used to partially repay the REIT’s existing borrowings, and reduce its aggregate leverage from 43.4% as at 30 Jun 2017 to 35.5%.
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