Keppel DC Reit private unit placement 3.7 times covered, issued at S$2.522 per unit

KEPPEL DC Reit's private placement of 81 million units was approximately 3.7 times covered, its manager said, adding that there was strong demand from new and existing unitholders globally comprising institutional and accredited investors.

The new units were issued at the top end of the range that it announced on Thursday for S$2.522 per unit.

Thus, the aggregate gross proceeds raised through the private placement will be approximately S$204.3 million.

The issue price represents a 2 per cent discount to the volume weighted average price of S$2.5742 per unit in the Reit as compared to trades completed on Aug 11 on the Singapore Exchange.

For illustrative purposes, it also represents a 1.5 per cent discount to the adjusted volume weighted average price of S$2.56 per unit after subtracting 1.421 Singapore cents per unit, the mid-point of the estimated advanced distribution range that the Reit manager previously said it would to existing Reit unitholders.

The advanced distribution range ensures that distributable income accrued by the Reit before the issue of the new units are only distributed in respect of existing units.

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The Reit's manager earlier announced that the proceeds would go towards funding an upcoming acquisition of a data centre at No 5 Bluesea Intelligence Valley in Guangdong, China, as well as to repay debt and to fund future acquisitions.

On Friday, units of Keppel DC Reit traded down 1.2 per cent or S$0.03 at S$2.54 as at 3pm.