Lippo Malls Puri is currently owned by a subsidiary of Lippo Malls Indonesia Retail Trust's sponsor. (Photo: Lippo Malls Indonesia Retail Trust)

Indonesia-focused retail REIT, Lippo Malls Indonesia Retail Trust (LMIRT), is raising gross proceeds of approximately SGD280.0 million through a rights issue exercise.

The proceeds will be deployed mainly to fund the acquisition of Lippo Malls Puri.

Related: Lippo Malls REIT faces credit ratings downgrade on ambitious acquisition plan

The REIT has indicated an issue price of SGD0.060 per unit, and expects to issue 4,682,872,029 units.

This is equivalent to approximately 160% of the 2,926,795,018 units in issue as at 18 September 2020.

Existing unitholders will be offered 160 rights units for every 100 held as at the record date.

The actual terms and conditions of the rights issue will be set out in the offer information to be lodged with the MAS and issued to unitholders.

The indicative issue price of SG0.060 per rights unit is at a discount of approximately 47.8% to LMIRT’s last closing price.

LMIRT was last done on the Singapore Exchange at SGD0.11, a discount of more than 50% to book value according to data compiled on the Singapore REITs table.

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.