FRASERS Hospitality Trust (FHT) has completed a private placement of 150 million new stapled securities to raise gross proceeds of S$123 million to part finance the acquisition of Sofitel Sydney Wentworth, said Reit manager Frasers Hospitality Asset Management on Friday.
The private placement was priced at the top end of the price range at S$0.820 per stapled security.
TCC Hospitality Limited subscribed for 59.34 million stapled securities. The remaining 90.66 million stapled securities were two times subscribed.
Eu Chin Fen, chief executive officer of the Reit manager, said: "Investors' strong demand for the placement exercise indicates their support for FHT's investment strategy. Sydney has proven to be a favourable hospitality market. The acquisition of Sofitel Sydney Wentworth will strengthen our portfolio and enhance returns to our stapled securityholders."
In conjunction with the private placement, FHT intends to declare a distribution which is estimated to be 2.1 Singapore cents per stapled security. The actual quantum will be announced later.
The books' closure date for the advanced distribution will be July 3, 2015, and the advanced distribution will be paid on or around Sept 28, 2015.
DBS Bank was the financial adviser, lead manager and underwriter for the placement.