Entitled unitholders will be offered 23 new units at an issue price of 96 cents each for every 100 existing units. Out of the $886.3 million raised, $875.6 million (98.8%) will be used to partially finance the acquisition while the remaining $10.7 million (1.2%) will go to the professional fees and expenses to be incurred in relation to the acquisition.
Keppel REIT says it will fund the acquisition with an equity bridge loan of $886.3 million pending the receipt of proceeds from the preferential offering. The bridge loan will be provided by the joint bookrunners and underwriters of the offering. The net proceeds raised from the offering will be used to repay the bridge loan.
Keppel REIT units closed 0.52% higher at 97.5 cents on Dec 24 and are up by 12.29% year to date.
