Proceeds will be used to fund capital expenditure, tenant incentives, leasing costs to attract, to retain tenants, and to meet existing tenant obligations. At the same time, gearing will be held below 46% while strengthening the balance sheet.
Darren Chan of PhillipCapital has kept his "buy" call on Prime US REIT and increased his target price from 21 US cents to 30 US cents, following news that it has raised US$25 million via a private placement and will also increase its distribution following operational improvements in the US office market.
The placement was priced at 19.35 US cents, which was a discount of 10% off the closing price on Sept 24.
