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AA REIT launches private placement to raise proceeds of $50 mil

Samantha Chiew Published on Wed, Nov 22, 2017 / 7:17 AM GMT+8

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SINGAPORE (Nov 22): The manager of AIMS AMP Capital REIT (AA REIT) is launching a private placement exercise to raise at least $50 million in gross proceeds.

The REIT will issue about 37.2 million to 38.3 million new units at an issue price of between $1.305 and $1.345 each, representing a discount of between 4.1% to 6.9% to the volume weighted average price of $1.402 per unit.

AIMS AMP Capital Industrial REIT Management says the proceeds will primarily be used to partially repay AA REIT’s existing borrowings to reduce aggregate leverage and create additional debt headroom for future potential acquisitions, asset enhancement initiatives (AEIs) and/or other development opportunities that may be identified by the manager as well as for AEIs and balance payments on the REIT’s recent development projects.