SINGAPORE (July 31): Frasers Logistics & Industrial Trust (FLT) has raised $258.1 million through a private placement to partially fund its proposed acquisitions of 12 logistics properties in Australia and Germany.
See: Frasers Logistics & Industrial Trust to acquire stakes in 12 properties in Germany, Australia from sponsor for $482 mil
FLT issued 220 million new units at an issue price of $1.173 per unit – the top of end of its price range, and a 1.2% discount to the adjusted volume weighted average price of $1.1877 per unit.
The book was 3.2 times subscribed, with strong demand from existing and new investors.
After deducting professional fees for the placement, the net proceeds amount to $242.6 million.
“We are delighted by the overwhelming response to our private placement, which is reflective of investors’ confidence in FLT,” says Robert Wallace, chief executive officer of the manager.
“The proceeds raised will fund our proposed acquisition of interests in 12 prime logistics properties in Germany and Australia. The proposed acquisition will further deepen FLT’s presence in the two attractive logistics markets of Germany and Australia,” he adds.
The 12 freehold logistics properties, with a total gross lettable area of 297,000 sq m, are located within the major logistics hubs of Germany and Australia. The proposed acquisition is expected to be DPU accretive.
Upon completion, the proposed acquisition will increase FLT’s portfolio value to approximately A$3.5 billion.
The proposed acquisition is subject to unitholders approval at an extraordinary general meeting. Should FLT not proceed with the acquisition, the proceeds may be redeployed to fund future investments or repay existing debts.
DBS Bank, Citigroup Global Markets Singapore, Merrill Lynch (Singapore) and Oversea-Chinese Banking Corporation were the joint lead managers and underwriters for the private placement.
As at 10.54am, units in FLT are trading 1 cent higher, or up 0.8%, at $1.21.
