CICT's private placement closes at S$1.96 per unit, exercises upsize option

CAPITALAND Integrated Commercial Trust (CICT) C38U on Wednesday (Dec 8) priced its private placement at S$1.96 per unit, which is at the midpoint of the price range.

In a bourse filing, the real estate investment trust (Reit) manager said that the upsize option has been exercised to raise additional gross proceeds of S$46.9 million. This brings the total amount raised to some S$250 million and the total number of units to be issued to 127.6 million.

The placement, including the upsize option, was oversubscribed and drew strong demand from new and existing institutional, accredited and other investors, CICT's manager added.

Some S$150 million of the proceeds will be used to partially finance the proposed acquisitions of 2 office buildings in Sydney, Australia.

Another S$95.9 million will be used to partially fund potential acquisitions in Singapore and other developed markets; repayment and refinancing of debt and/or capital expenditure; and asset enhancement initiatives. The rest will be used to pay expenses and fees in connection with the private placement.

The issue price of S$1.96 per new unit represents a discount of 2.1 per cent to the adjusted closing price of S$2.0015. The adjusted closing price was computed by subtracting the midpoint of the estimated advanced distribution of between S$0.048 and S$0.049 per unit from the closing price on Dec 6, the last market day before the placement agreement was signed.

For illustrative purposes, the issue price is at a 2.4 per cent discount to the adjusted volume-weighted average price (VWAP) of S$2.0076 per unit for trades done on the Singapore Exchange on Dec 6, minus the midpoint of the estimated advanced distribution.

The issue price also represents a 4.7 per cent discount to the VWAP of S$2.0561 per unit, the manager noted.

JPMorgan and UOB were the joint global coordinators and bookrunners for the private placement. CICT's manager expects the new units to begin trading at 9 am on Dec 9.

Units of the counter closed lower by S$0.01 or 0.49 per cent at S$2.04 on Wednesday.

Read more:

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• CICT's Q3 net property income more than doubles to S$242.6m, with room for retail recovery