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125.4m new units in Prime US Reit to begin trading on Feb 21

ABOUT 125.4 million new units in Prime US Reit will start trading on the Singapore bourse at 9am on Friday.

They bring the total number of Prime US Reit units in issue to 1.05 billion. 

The new units were issued at US$0.957 apiece, under the real estate investment trust’s private placement to raise some US$120 million for an acquisition.

Last week, Prime US Reit announced that it is forking out US$165.5 million to purchase a US property located in Sacramento, California called Park Tower.

Prime US Reit's policy is to distribute its distributable income on a semi-annual basis to unitholders.

However, in connection with the private placement, the manager has declared a cumulative distribution - in respect of the existing units - which comprises a distribution from the Reit's listing date of July 19, 2019 to Dec 31, 2019, as well as a distribution from Jan 1, 2020 to Feb 20, 2020.

Thereafter, the next distribution will comprise Prime US Reit's distributable income from Feb 21, 2020 to June 30, 2020. Its semi-annual distributions will then resume afterwards.

Units in Prime US Reit closed at US$1.04 on Thursday.