Soilbuild REIT has launched a preferential offering of 192,135,040 new units to raise gross proceeds of approximately SGD101.8 million.

The proceeds will be used to fund the acquisition of a multi-tenanted freehold Grade A office property at 25 Grenfell Street, Adelaide, Australia.

The property is being acquired for a purchase price of AUD134.22 million (SGD127.51 million).

It has a weighted average lease expiry expiry (WALE) of 5.0 years by gross rental income, and will lengthen Soilbuild REIT’s portfolio WALE from 3.8 years to 3.9 years.

The property is 88.4% occupied, and is expected to generate a NPI yield of approximately 7.67% before transactions costs.

Soilbuild REIT is making the preferential offering on the basis of 18 new units for every 100 existing units held in the REIT as at 5.00 p.m. on 29 August.

The issue price of SGD0.53 per new unit represents a discount of approximately 8.4% to the volume weighted average price of SGD0.5788 for trades on 21 August.

The offering opens on 3 September, and the last date for acceptance and payment is 11 September.

New units in Soilbuild REIT from the offering are expected to be listed on 19 September on the Singapore Exchange.

Following the acquisition, Soilbuild REIT will own 11 properties in Singapore and 3 properties in Australia with the total portfolio asset value of SGD1.3 billion.

By Shariffa Al-Habshee

Shariffa joined REITsWeek in 2017, and monitors Asia-Pacific REITs for the publication.