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Croesus Retail Trust closes private placement at 75 Singapore cents per new unit

CROESUS Retail Asset Management, the trustee-manager of Croesus Retail Trust (CRT), has closed its order book for the private placement. The issue price per new unit has been fixed at 75 Singapore cents.

The private placement drew strong participation from new and existing institutional investors, including long-only funds and real estate specialists, said the firm. In total, 70 million new units were subscribed.

The private placement exercise will raise net proceeds of S$50.9 million (97 per cent of gross proceeds) and will be used to partially fund potential acquisitions of retail assets in Japan, asset enhancement initiatives and for general corporate and working capital purposes.

Trading of the new units on Singapore Exchange is expected to begin on April 4.

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The trust had announced on Wednesday it has launched a private placement of up to 70 million new units - this includes the upsize option of 10 million units in the event of oversubscription - at an issue price of between 74.5 and 77 Singapore cents per new unit.

Trading in CRT units resumed at 4.30pm on Thursday following a trading halt earlier in the day pending the announcement. The counter closed 3.5 Singapore cents or 4.3 per cent lower at 78 Singapore cents.