CAPITALAND Ascendas Reit : A17U 0% (Clar) has closed its private placement at S$2.727 apiece with 183.3 million new units issued, said the real estate investment trust’s (Reit) manager on Wednesday (May 17).

The private placement, which was 3.1 times subscribed, raised gross proceeds of S$500 million after it was upsized.

The issue price represents a 5.1 per cent discount to the volume-weighted average price (VWAP) of S$2.8727 per unit for all trades done on the Singapore Exchange on Monday, up to the time the agreement was signed on Tuesday.

For illustrative purposes, the issue price range represents 3 per cent of the adjusted VWAP of S$2.8113 per unit after subtracting an advanced distribution of S$0.06141 per unit.

“The private placement drew strong demand from new and existing institutional, accredited and other investors,” said the manager.

Trading of the private placement units is expected to start on May 25.

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Approximately S$139.5 million or 27.9 per cent of the gross proceeds will be used to partially fund the acquisition of Seagate’s research and development facility and its associated costs, said the manager.

Another S$129.9 million or 26 per cent will partially fund the potential acquisition of an asset in Europe, subject to completion of final negotiations.

Another S$160.4 million or 32.1 per cent will go towards debt repayment. Approximately S$64.4 million or 12.9 per cent will partially finance the proposed redevelopment of a logistics property in Singapore.

Units of Clar closed Monday up 0.7 per cent or S$0.02 at S$2.88, before it requested for a trading halt the following morning. The Reit resumes trading on Wednesday.