Asked why Ascendas REIT opted for a rights issue instead of a placement and preferential equity fundraising (EFR), William Tay, CEO of Ascendas REIT’s manager, said, “We wanted to take the opportunity to thank the unitholders by allowing all of them to participate in the rights. This is a good price for unitholders if they want to continue with us in this journey.”
SINGAPORE (Nov 25): On Nov 1, Ascendas Real Estate Investment Trust (REIT) announced the proposed acquisition of 28 properties in the US and two business parks in Singapore for $1.66 billion from immediate parent Ascendas-Singbridge, now part of CapitaLand. Including expenses, the acquisition cost is likely to be $1.706 billion. This is being funded via a 16-for-100 rights issue at $2.63 a unit to raise $1.31 billion.
Since the properties are interested-party transactions, independent unitholders can vote for or against the deal in an extraordinary general meeting held on Nov 27. SAC Capital, who is the Independent Financial Adviser, has advised the independent directors and the audit and risk committee to urge independent unitholders to vote in favour of the proposed acquisitions.
