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Frasers Commercial Trust launches private placement to raise S$142.1 million

FRASERS Commercial Trust on Thursday launched a private placement to partially finance its acquisition of a Melbourne office building, 357 Collins Street.

The placement consists of 84 million new units at an issue price of between S$1.46 and S$1.48 per new unit.

Gross proceeds of the placement will amount to about S$142.1 million, and net proceeds, about S$140.2 million.

Depending on market conditions, the manager may in its discretion decide to increase the size of the private placement by up to an additional 12 million new units at the issue price to pay down existing debt as well as for general working capital purposes.

Approximately S$122.7 million, or 86.4 per cent of the maximum gross proceeds of the private placement, will finance the estimated total acquisition cost of 357 Collins Street.

Frasers Centrepoint Asset Management has appointed Barclays Bank PLC, Singapore Branch, Citigroup Global Markets Singapore Pte Ltd and DBS Bank Ltd as the joint placement agents and underwriters for the placement.