Ascott Reit raises S$250 million from perpetual securities issuance

ASCOTT Residence Trust (Ascott Reit) has raised S$250 million from the issuance of perpetual securities at a fixed distribution rate of 4.68 per cent per annum, which will be used to fund potential acquisitions.

Orders exceeded S$1 billion, or four times the issue size. Ascott Residence Trust Management's chief executive officer Ronald Tay said that the perpetual securities "attracted strong participation from institutional investors and private banking clientele".

The Reit's manager is actively pursuing acquisitions to enhance Ascott Reit's portfolio, with a target asset size of S$6 billion by 2017, chairman Lim Jit Poh said.

Ascott Reit closed 0.5 Singapore cent higher at S$1.28 a unit on Tuesday, before the announcement.