ESR-Reit prices preferential offering at S$0.40 per unit

J91U : J91U 0% has priced its preferential offering at 40 Singapore cents per unit, to raise gross proceeds of up to S$50 million.

In a bourse filing on Tuesday, the real estate investment trust's (Reit) manager said the issue price represents a discount of 9.2 per cent to the volume-weighted average price of 44.03 cents per unit of all trades done in the units on July 26, up to the time the preferential offering was announced on July 27.

Some 124.1 million new units in ESR-Reit will be issued on the basis of 32 preferential offering new units for every 1,000 existing units held at the record date of Aug 4, 5pm.

Gross proceeds from the preferential offering will be used for debt repayment and to partially finance its asset enhancement initiatives at its properties at 16 Tai Seng Street and 7000 Ang Mo Kio Avenue 5.

ESR-Reit expects the new units will be listed on Aug 26.

Earlier in May, the Reit's manager said it was looking to raise about S$150 million via a private placement and preferential offering to fund its S$119.2 million acquisition of a Tanjong Penjuru logistics facility, as well as asset enhancement initiatives for properties in Tai Seng and Ang Mo Kio.

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The Reit had in May issued 268.6 million units at 37.2 cents per unit, as part of a private placement to raise gross proceeds of S$100 million.

Separately, ESR-Reit's manager said it will pay a taxable income distribution of 0.344 cent per unit for the period from May 18 to June 30, 2021, to unitholders whose securities accounts with the Central Depository are credited with units on the record date on Aug 4, 5pm.

It expects the distribution will be paid on or around Sept 16.

Units of ESR-Reit were trading flat at 44 cents as at 9.45am on Tuesday.