CACHE Logistics Trust has raised gross proceeds of S$100 million from a private placement, managers ARA-CWT Trust Management (Cache) Ltd said on Wednesday.
The managers added that they plan to declare an advanced distribution of 0.86 Singapore cent per unit to existing unitholders for the period from Oct 1, 2015 to Nov 12, 2015. The new units will not be entitled to the advanced distribution.
About 106.27 million new units will be issued at S$0.941 each to raise funds for potential acquisitions in Australia, repay loans and for general corporate and working capital purposes.
Daniel Cerf, chief executive officer of the manager, said: "We like the Australian market particularly with the attractiveness of institutional-grade warehouses, freehold land, relatively longer lease tenures and attractive yield spreads between the Australian dollar borrowings and property yields."
Mr Cerf added the manager is taking the opportunity to pare down debt to maintain a suitable capital structure and provide headroom for future acquisitions and expansion plans. As of end-September, Cache's logistics warehouse portfolio boasts of a total gross floor area of 6.7 million square feet valued at S$1.3 billion.
At S$0.941 per unit, the placement price represents a discount of about 5 per cent to the trust's adjusted volume weighted average price of S$0.9903 per unit for trades on the Singapore Exchange from Nov 2 up to the time the placement agreement was signed on Nov 3.
The placement will increase the trust's number of units outstanding by 13.5 per cent, and this is expected to improve the level of trading liquidity of its units, the managers said. The new units are expected to be listed on Nov 13.
The joint lead managers and underwriters are DBS Bank Ltd and The Hongkong and Shanghai Banking Corporation Ltd, Singapore Branch.