Soilbuild Reit 94.4m preferential offering oversubscribed

SB Reit Management announced on Wednesday that its preferential offering to raise S$59.4 million through the issue of about 94.4 million new units received "overwhelming support from unitholders".

SB Reit Management said that at the close of the preferential offering on Monday, the valid acceptances and applications for excess new units received amounted to about 164.6 million new units, representing about 174.4 per cent of the total number of new units offered pursuant to the preferential offering.

Roy Teo, chief executive officer of SB Reit Management, said that the successful completion of the preferential offering, in conjunction with the unsecured banking facility from the Bank of East Asia (Singapore), has provided "sufficient funding" for the acquisition of Bukit Batok Connection.

He added: "This will enable the manager to achieve its objectives of revenue diversification and providing stable distributions to unitholders."

SB Reit Management also noted that Lim Chap Huat, the sponsor of Soilbuild Reit, has "only" subscribed for his pro rata entitlement of approximately 23.7 million new units to maintain his existing unitholding and was not required to subscribe for any excess new units under the preferential offering.

The new units are expected to start trading on the Singapore Exchange main board from Sept 27.