ARA Logos raises about S$50m in private placement

ARA Logos Logistics Trust has raised about S$50 million from its private placement to partially finance its proposed acquisition of five Australian properties and investment in two of the sponsor's funds.

About 90.5 million new units were issued at 55.25 Singapore cents each.

The issue price represents a discount of 7.2 per cent to the volume-weighted average price (VWAP) of 59.52 Singapore cents per unit in the trust for trades done for the preceding market day on Oct 30 and up to the time the underwriting agreement was signed on Nov 2. Based on an adjusted VWAP of 57.43 Singapore cents per unit, the issue price represents a discount of 3.8 per cent.

The placement saw strong participation from a broad spectrum of investors, including new and existing institutional investors, the trust's manager said on Tuesday in a bourse filing.

Gross proceeds from the private placement will be used to partially finance the proposed acquisition of five logistics properties located in Australia and proposed investment in two of the sponsor's funds, subject to unitholder approval at an extraordinary general meeting.

If ARA Logos does not proceed with the proposed acquisition and fund investments, placement proceeds will be redeployed to fund ongoing as well as future investments or to pare down debt, the manager said in a separate bourse filing on Monday.

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Total gross proceeds from the private placement, the upsize option if exercised, together with a preferential offering would be around S$100 million. The upsize option for the placement was not exercised.

Citigroup Global Markets Singapore, Credit Suisse (Singapore) and DBS were the underwriters for the private placement.

The new units are expected to start trading at 9am on Nov 11, following in-principle approval from the Singapore Exchange.

The manager on Tuesday requested to lift a trading halt called on Monday. Prior to the halt, the counter was trading flat at 59.5 Singapore cents.