Suntec Reit raising $341m to repay debt

SUNTEC Reit is issuing 218.1 million new units at $1.605 apiece in a private placement.

The move will increase the unit base by 9.7 per cent. Analysts say this will dilute distributions per unit by 3.9-8.4 per cent from FY14 to FY16.

Although the Reit said the $341.4 million in net proceeds raised will go towards repaying its existing debt, analysts flagged imminent acquisitions as a more likely scenario.