Frasers : J69U 0% Centrepoint Trust : J69U 0%’s (FCT) private placement to raise S$200 million has closed at an issue price of S$2.18 per new unit, near the middle of the S$2.16-to-S$2.204 range proposed.

The placement was 2.5 times covered with “strong participation” from new and existing institutional, accredited and other investors, the manager said on Friday (Jan 26).

The issue price of S$2.18 represents a 4.7 per cent discount to the volume-weighted average price of S$2.2871 per unit on all trades done on Wednesday (Jan 24), before the placement agreement was signed.

FCT on Thursday announced plans to issue 91.7 million units via a private placement to partially fund its acquisition of Frasers Property’s : TQ5 0% 24.5 per cent stake in retail mall Nex, which has an agreed property value of S$2.1 billion.

Upon completion, FCT will hold an effective 50 per cent interest in Nex.

Under the deal, FCT will fully acquire all shares of FCL Emerald, a unit of Frasers Property, which holds a 49 per cent interest in Nex Partners (NP) Trust. FCL Emerald also owns a 49 per cent stake in Frasers Property Coral, the trustee-manager of NP Trust.

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NP Trust is a private trust that holds a 50 per cent stake in Gold Ridge, which in turn owns Nex.

The proposed acquisition will be subject to unitholder approval at an extraordinary meeting to be convened, FCT’s manager said.

Proceeds from the private placement will be redeployed to fund future investments or pare down debt in the event FCT ditches the deal.

Shares of FCT closed 2.6 per cent or S$0.06 lower at S$2.22 on Friday. The counter resumed trading following a halt called on Thursday.

Frasers Property, meanwhile, was up 1.1 per cent or S$0.01 at S$0.95.