AA Reit raises gross S$55m from private placement at S$1.305 per new unit

AIMS AMP Capital Industrial Reit (AA Reit) has raised gross proceeds of about S$55 million through a private placement of 42.145 million new units at S$1.305 apiece.

The overnight placement saw strong demand from institutional investors, family offices and high net worth individuals, which allowed AA Reit to exercise the upsize option and raise the offer from S$50 million to S$55 million.

The issue price represents a discount of 6.9 per cent to AA Reit's volume weighted average price of S$1.402 per unit for trades done on the Singapore Exchange on Tuesday.

"The equity placement will strengthen our balance sheet, thereby enhancing AA Reit's financial flexibility," said the real estate investment trust (Reit) manager's CEO, Koh Wee Lih.

The proceeds will primarily be used to repay AA Reit's existing borrowings to provide debt headroom for future potential acquisitions, asset enhancement initiatives and/or other development opportunities as well as for the balance payments on AA Reit's recent development projects.