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Owner of Soilbuild Reit's manager takes S$30m of its S$65m perps offering

THE controlling shareholder of Soilbuild Business Space Reit's manager is taking nearly half of the real estate investment trust's S$65 million subordinated perpetual securities offering, according to a filing with the Singapore Exchange early Friday morning.

Lim Chap Huat, who also holds a 9.096 per cent stake in the Reit, has agreed to subscribe for S$30 million of the deal, which was priced on Thursday night.

The perpetuals will bear an annual distribution rate of 6 per cent for the first three years. After those three years, and every three years thereafter, the distribution rate will reset to 379 basis points over the prevailing three-year Singapore-dollar Swap Offer Rate.

Mr Lim wholly owns Soilbuild Group Holdings, which sponsors the Reit and also wholly owns the Reit manager.

The perpetual securities – which come under its S$500 million multi-currency debt issuance programme established previously – are expected to be issued on Sept 27.

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The net proceeds arising from the issue of the securities will be used for financing the general corporate purposes of Soilbuild Reit and its subsidiaries, including acquisitions and/or investments.

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