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Mapletree Industrial sets placement at price talk's S$1.90 rich end, upsizes to S$155.7m

MAPLETREE Industrial Trust has priced an upsized S$155.7 million placement of units at S$1.90 apiece to cover the rich end of price talk.

The real estate investment trust (Reit) had planned to issue at least S$125 million of units between S$1.83 and S$1.90 per unit, with an over-allotment option of at least S$25 million. Bookrunner and underwriter DBS Bank received interest that was 3.3 times the shares available.

The issue price represents a 3.2 per cent discount to the counters volume-weighted average price of S$1.9623 on Tuesday. The units last changed hands at S$1.96 on Tuesday before the deal was announced.

Mapletree Industrial will declare an advanced distribution of between 3.97 Singapore cents and 4.01 Singapore cents per unit for the period from Oct 1, 2017 to the issuance date of the new units to ensure that existing unitholders receive a payout before getting diluted by the placement. Units issued through the placement will not be entitled to the advanced payout. The exact distribution amount will be determined at a later date.

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The advanced distribution will be on top of the trust's quarterly distribution of three Singapore cents per unit, which was declared on Tuesday as the Reit announced its fiscal second-quarter results.

About S$152.7 million of the proceeds will be used to help fund the Reit's S$164.3 million share of a joint US$750 million acquisition of 14 data centres in the US. Mapletree Industrial's joint venture partner is its sponsor, privately held Mapletree Investments.

The remaining S$3 million of the proceeds will be used to pay placement-related expenses.