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FLT raises S$329m in private placement more than 3.9 times subscribed

FRASERS Logistics & Industrial Asset Management, manager of Frasers Logistics & Industrial Trust (FLT), announced that FLT has successfully raised S$329 million in gross proceeds through a private placement overnight which was 3.9 times covered.

It saw some 333.2 million units placed at an issue price of S$0.987 per unit, representing a discount of 5.4 per cent to the volume weighted average price (VWAP) of S$1.0433 per unit of trades executed on the Singapore Exchange for the full market day on May 9, 2018.

The placement saw "strong participation from new and existing institutional and other accredited investors," FLT said in an exchange filing.

Frasers Property Limited and TCCGI - a company owned by FPL's group chief executive Panote Sirivadhanabhakdi and his siblings - have been allocated 68 million and 19.68 million new units respectively under the private placement.

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The placement was part of FLT's latest round of equity fundraising, with the other part being a pro-rata and non-renounceable one-for-ten preferential offering exercise to existing unitholders, consisting of 152.15 million new units priced between S$0.942 and S$0.967, to be launched on May 23.

The preferential offering is at a 7.3 discount to the VWAP of S$1.0433 per unit on May 9, and aims to raise gross proceeds of between S$143.3 million and S$147.1 million.

The Reit's (real estate investment trust) manager intends to declare an advanced distribution from Apr 1, 2018 to the date prior to the new units being issued.

Robert Wallace, the manager's chief executive, said: “We are delighted by the overwhelming response to our private placement, which is testament to investors’ confidence in FLT’s strategy and support for our strategic entry into Germany and the Netherlands. We would like to thank all existing and new investors, as well as our sponsor – Frasers Property Limited – for their strong support of FLT’s private placement.

"We look forward to the continued support of the existing unitholders in the preferential offering," he added.