Scrutinising discounted placements by Reits
Reit managers should disclose the extent to which potential upside from acquisitions are affected when placement prices are discounted
THE manager of Manulife US Real Estate Investment Trust (Manulife US Reit) could not have picked a worse time to attempt raising US$80 million through a placement of new units. But it managed to more than pull the deal off.
On Nov 30, even as markets around the world were reeling from the rapidly spreading Omicron variant, the manager of the US office property Reit said a total of US$100 million had been raised through the placement - with the "upsize option" fully exercised.
It said the placement was more than 2 times covered, and there was "strong participation" from new and existing institutional investors and private wealth clients.
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