Singapore-listed AIMS APAC REIT has launched an equity fundraising exercise that aims to garner gross proceeds of approximately SGD100 million.
The exercise comprises a private placement tranche that will be open to selected investors and a preferential offering tranche, which almost all investors can participate in.
For the private placement, units will be issued at between SGD1.214 and SGD1.249 each.
Between 56,044,000 and 57,660,000 new units will be issued in this tranche and this will raise about SGD70 million for the REIT.
Meanwhile for the preferential offering, the new units will be issued at between SGD1.189 and SGD1.224.
Up to 25,376,361 units of the REIT will be issued under this tranche, and this will raise some SGD30 million for AIMS APAC REIT.
In terms of allotment for the preferential offering, it will be between 34 and 35 new units for every 1,000 existing units as at the record date.
DBS Bank, Maybank Securities, and RHB Bank Berhad have been appointed as the joint bookrunners and underwriters for the exercise.
Approximately 32% of the gross proceeds of this exercise will be deployed to fund the asset enhancement initiatives for two of the REIT’s assets in Singapore.
A further 65.2% of the gross proceeds will be deployed to fund any AEIs other than the two assets, potential acquisitions, as well as pare down its existing debt to keep the REIT’s aggregate leverage “within the desired range”.
AIMS APAC REIT was last done on the Singapore Exchange at SGD1.31 before the trading halt on 31 May, which presently implies a distribution yield of 7.59% according to data on the Singapore REITs table.