AA Reit's 42m new units start trading

AIMS AMP Capital Industrial Reit (AA Reit) has commenced the trading of some 42.15 million new units on the Singapore Exchange on Friday morning, the Reit said in an announcement shortly before the market opened.

The listing, which commenced at 9am, follows a private placement on Nov 22, where the real estate manager's pricing of S$1.305 per share raised gross proceeds of about S$55 million.

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

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, said Koh Wee Lih, the Reit manager's CEO.

The counter was trading at S$1.34, down S$0.01 or 0.74 per cent as at 10.03am.