UI Boustead Reit launches S$1.2 billion IPO at S$0.88 per unit

[SINGAPORE] UI Boustead Real Estate Investment Trust (Reit) has launched its initial public offering (IPO) of about 677.2 million units at S$0.88 each, and is expected to start trading on the Singapore Exchange mainboard on Mar 12. 

It expects to raise gross proceeds of around S$1.2 billion from the offer and issuance of cornerstone units. Including debt facilities and the sponsor and Boustead Projects contribution, the trust will have just over S$2 billion in proceeds.

The manager has earmarked around S$1.9 billion for the acquisition of properties, S$40.6 million for the payment of refundable consumption tax, S$36.9 million for issue expenses, S$43.4 million for transaction costs, and the remaining S$19.7 million for working capital and cash reserves.