Prime US REIT - Park Tower. (Photo: Google Maps)

Prime US REIT has launched a private placement exercise to raise some USD100 million.

The placement may be increased by an additional USD20 million.

Funds raised from the placement will be partialy deployed to fund the acquisition of Park Tower.

Prime US REIT announced on 12 February that it would be acquiring the 24-storey Grade A office tower for USD165.5 million.

Park Tower is 92.2% occupied by 43 tenants, with a weighted average lease expiry (WALE) of 5.6 years by net lettable area.

The acquisition was announced on the same day of the REIT’s FY2019 financial results.

Prime US REIT has reported a distribution per unit (DPU) of 3.15 cents for the financial year, beating forecast made during its IPO by 7.5%.

Meanwhile, the REIT’s gross revenue for the full financial year came in at USD60.6 million, beating forecast by 2.2%.

Prime US REIT’s placement units are being offered to institutional and other qualified investors at between USD0.928 and USD0.957 each.

Data from the REIT’s latest financial results have been updated into the Singapore REITs table.

Prime US REIT was last done on the Singapore Exchange at USD1.02.

By Shariffa Al-Habshee

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