ARA Logos looks to raise S$50m for property acquisitions

ARA Logos Logistics Trust has launched a preferential offering to raise gross proceeds of about S$50 million.

The net proceeds will be used to partially finance its proposed acquisition of five logistics properties in Australia and investments into two of the sponsor's funds.

The preferential offering to unitholders will carry an issue price of S$0.5525 per new unit. This represents an 8 per cent discount to the volume-weighted average price (VWAP) of S$0.6008 per unit of all trades in ARA Logos units on Dec 21, up to the time the preferential offering was announced.

About S$49.75 million or 99.5 per cent of the gross proceeds will be used to partially finance the proposed acquisitions and fund investments. The remainder will be used to pay for estimated professional and other fees and expenses incurred in connection with the preferential offering.

In November, ARA Logos raised S$50 million in a private placement and used about 42 per cent of the gross proceeds to partially finance the same proposed acquisitions and fund investments.

ARA Logos' manager requested a trading halt on Wednesday before the start of trading. Units of the trust traded flat at S$0.605 on Tuesday.