FLCT private placement raises S$335.8m; 2.8 times subscribed at S$1.399

FRASERS Logistics & Commercial Trust's (FLCT) private placement which raised S$335.8 million was around 2.8 times subscribed, the manager said on Tuesday.

Most of the S$335.8 million in gross proceeds raised will be used to partially fund FLCT's proposed acquisition of six freehold properties in Germany, the Netherlands and the UK. About 5.7 per cent, or S$19.3 million, will be used to pay estimated fees and expenses in connection with the proposed acquisition and private placement.

A total of 240 million units will be issued at S$1.399 apiece. This includes 20 million additional new units under an upsize option. The manager said the placement drew strong participation from new and existing institutional and other accredited investors.

The issue price of S$1.399 per new unit was fixed at the top end of the price range. This represents a discount of about 2.4 per cent to the volume-weighted average price of S$1.4332 per unit on Friday, the preceding market day up to the time the placement agreement was signed on Monday.

The manager expects the new units to start trading at 9am on June 3.

FLCT's manager on Monday proposed to acquire three properties in Germany, one in the Netherlands and two in the UK for an agreed property price of S$548.7 million.

The Reit will pay S$469.7 million in cash to all the sellers of the properties - 93.6 million euros (S$150.9 million) for the Germany and Netherlands properties, and about £170.2 million (S$318.8 million) for the UK properties.

Reit sponsor Frasers Property will inject the Germany and Netherlands properties into FLCT, while the proposed UK deal is the Reit's maiden third-party acquisition. The manager expects the proposed deal to be distribution per unit and net asset value accretive.

The manager on Tuesday lifted the trading halt called on Monday morning for FLCT's units. The counter fell 0.69 per cent to S$1.43 when market closed on Tuesday.