A-Reit to buy One@Changi City, sell new units to raise at least S$408m

ASCENDAS Real Estate Investment Trust (A-Reit) said on Wednesday it plans to acquire One@Changi City, a property at Changi Business Park, from two joint-venture partners, Frasers Centrepoint and Ascendas Pte Ltd, for S$420 million.

This will partly be funded by the sale of new units that will raise at least S$408 million, it said in a separate announcement.

A-Reit will offer, through a private placement, 90 million new units to institutional and other investors at an issue price of between S$2.223 and S$2.290 per share. This is aimed at raising no less than S$200 million.

It will also raise funds through a pro-rata and non-renounceable preferential offering of 93.8 million new units on the basis of three new units for every 80 existing units in A-Reit. This will raise at least S$207.9 million.

Just over half of the proceeds from the sale of new units will be used to fund the acquisition of One@Changi City. The remainder of the funds raised will be used to pay for a potential acquisition of a logistics property in Australia, debt repayment, expenses and future acquisitions.