ESR LOGOS REIT's private placement has been three times subscribed, with 454.5 million units to be issued at 33 cents per share.
According to the REIT manager, the investors include quality long-only institutional investors, real estate specialists and existing investors.
The new units will start trading on Feb 27.
In addition, the REIT will be launching a preferential offering, with entitled unitholders subscribing for new units at 32.5 cents each, as part of the bid to raise $300 million in new capital.
The preferential offering of around 447.8 million and 454.5 million new units will be launched following an EGM, which is to be held.
According to E-LOG, the proceeds raised will be used for the funding of any potential acquisitions, redevelopments and asset enhancement initiatives of the properties owned by E-LOG.
See also: VCPlus to raise just $600,000 from placement instead of $6.66 million after investors' u-turn
The equity fundraising will also lower the REIT’s aggregate leverage to 38.0% from 41.8% as at Dec 31, 2022. It will also increase the REIT’s debt headroom to $1.1 billion based on a 45% aggregate leverage limit.
On a pro forma basis, the REIT’s net asset value (NAV) per unit will drop to 35.9 cents from 36.4 cents before the equity fund raising.
