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Frasers Logistics & Industrial Trust raises S$258.1m via private placement

FRASERS Logistics & Industrial Trust (FLT) has raised S$258.1 million through a private placement of 220 million units at an issue price of S$1.173 per unit.

The private placement announced late Tuesday drew strong demand from new and existing investors which led to the book being approximately 3.2 times subscribed, FLT said.

The issue price was at the top end of the price range of between S$1.143 and S$1.173 and was at a 1.2 per cent discount to the adjusted volume weighted average price (VWAP) of S$1.1877.

The adjusted VWAP is computed based on the volume weighted average price of trades in the units for the full market day on July 30, 2019, and subtracting the estimated advanced distribution of about 2.45 Singapore cents per unit from April1, 2019, to the day immediately preceding the date on which the new units under the private placement will be issued.

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The new units represent about 10 per cent of the total issued capital post-offering, said a FLT spokesman. The enlarged capital base post-placement will be about 2.25 billion units.

FLT's share closed unchanged at S$1.20 on Tuesday.

The proceeds from the placement is to fund the proposed acquisition by FLT of 12 prime logistics properties located in Germany and Australia. FLT had said earlier this month that it was acquiring the 12 freehold properties – nine in Germany and three in Australia – from its sponsor Frasers Property for A$644.7 million (S$612.5 million).

The proposed acquisition will increase FLT’s portfolio value to about A$3.5 billion at completion. FLT’s manager said the portfolio will be enhanced through further geographical diversification, an increased freehold component, reduced tenancy concentration risk and a longer weighted average lease expiry.

The new units are expected to be issued and start trading on Aug 8, 2019.

DBS Bank, Citigroup Global Markets Singapore, Merrill Lynch (Singapore) and OCBC are the joint lead managers and underwriters in the private placement.