AIMS AMP Capital Industrial REIT's 8 Tuas Avenue 20. (Photo: AIMS AMP Capital Industrial REIT)

AIMS AMP Capital Industrial REIT has launched of a private placement exercise to raise gross proceeds of at least SGD50 million.

The placement will see the REIT issue between 37,175,000 and 38,314,000 new units at an issue price of between SGD1.305 and SGD1.345 each.

The issue price represents a discount of between 4.1% and 6.9% to the volume weighted average price of SGD1.402 per unit, for trades done on the Singapore Exchange on 21 November 2017.

Maybank Kim Eng Securities is the sole bookrunner and underwriter of the exercise.

Proceeds from the exercise will primarily be used to partially repay the REIT’s existing borrowings to reduce aggregate leverage, and create additional debt headroom for future potential acquisitions, and asset enhancement initiatives (AEIs), among others.

“The equity fund raising exercise is reflective of [the]REIT’s ongoing efforts to deliver on its strategy and maintain a strong and prudent capital structure”, said Koh Wee Lih, CEO of the REIT’s manager. said,

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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.