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REITs, trusts resume EFR as CapitaLand Ascendas REIT upsizes placement

Goola Warden
Goola Warden • 10 min read
REITs, trusts resume EFR as CapitaLand Ascendas REIT upsizes placement
CapitaLand Ascendas REIT's manager explains why 20 year leasehold asset makes sense, raises $500 million
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CapitaLand Ascendas REIT (CLAR) announced early on May 17 that it has upsized its planned $450 million private placement to $500 million. The pricing of $2.727 per new unit is at the low end of the indicative range (because the placement was upsized), and at a 5.1% discount to CLAR’s last trading price on May 15.

CLAR’s $500 million capital raising brings the total raised by S-REITs in equity this year to $1 billion. On March 31, Mapletree Logistics Trust (MLT) raised $200 million in an overnight placement. In April, ESR-LOGOS REIT (E-LOG) completed a preferential equity fundraising (EFR) of $150 million, taking its total fundraising to $300 million. E-LOG had earlier raised $150 million via a private placement.

The next announced EFR is likely to be from Manulife US REIT (MUST). Its manager has indicated plans to place 9.8% of new units to Mirae Assets Global Investment.

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