The manager of ESR REIT has announced the completion of its preferential offering which saw approximately 124.1 million new units issued at 40 cents per unit, raising $49.6 million.
The preferential offering follows a private placement which raised $100 million in May, resulting in total equity fund raising gross proceeds of $149.6 million.
The preferential offering price of 40 cents represents a discount of some 9.2% to the volume weighted average price of 44.03 cents per unit on July 26.
According to the manager, the offering was approximately 3.6 times subscribed.
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The new units are expected to be listed and quoted on the Main Board of Singapore Exchange Securities Trading on August 26.
“We are delighted with the outcome of the preferential offering which saw strong participation from existing unitholders. This follows the equally successful private placement that was completed earlier in the year, which was approximately 3.4 times covered, inclusive of the upsized option. Altogether, the demand for both the private placement and preferential offering was approximately $517.4 million or about 3.5 times the total offer size,” says Adrian Chui,CEO and executive director of the manager.
Net proceeds from the equity fund raising includes partially financing the acquisition of the in-demand modern ramp-up logistics facility located at 46A Tanjong Penjuru; partially funding the upcoming asset enhancement initiatives planned for 7000 Ang Mo Kio Avenue 5 and 16 Tai Seng Street; and partially repaying existing debt drawn down to fund the acquisition of 10% stake in ESR Australia Logistics Partnership.
Units in ESR REIT closed up 1 cent or 2.13% higher at 48 cents on August 23.
