CapitaLand Commercial Trust (CCT) has raised gross proceeds of SGD220 million from a private placement exercise that was announced on the evening of 17 July.

Following an accelerated book-building process, the exercise has closed, with the REIT issuing 105,012,000 new units at SGD2.095 each.

This is a discount of approximately 3.7% to the volume weighted average price of SGD2.1762 for trades done on the Singapore Exchange on 17 July.

The private placement was 5 times covered and drew strong demand from new and existing institutional, accredited and other investors, said the REIT.

Trading of new units from the private placement is expected to commence at 9.00 a.m. on 29 July 2019.

The private placement exercise has been launched in the wake of revelations that CCT is acquiring a stake in Frankfurt's Main Airport Centre pending unitholders’ approval.

Related: CapitaLand Commercial Trust sheds light on future acquisition plans

The acquisition will be funded by either EUR-denominated debt, or a combination of EUR-denominated debt and proceeds from an equity fund-raising exercise, said the REIT on 17 July.