The manager of CapitaLand Integrated Commercial Trust has announced that the private placement launched on Dec 7 has closed, with the issue price fixed at $1.960 per new unit.
The figure lies on the higher end of the price range between $1.930 and $1.981 announced yesterday. It also represents a discount of approximately 2.37% to the adjusted volume weighted average price of $2.0076 per unit as of Dec 6.
See: CICT launches private placement to raise $200 mil
In addition, the placement’s upsize option was also exercised, raising additional gross proceeds of S$46.9 mil. In total, the private placement raised gross proceeds of $250 million, with 127.55 million new units to be issued.
According to the manager, the private placement, including the upsize option was oversubscribed and drew strong demand from new and existing institutional, accredited and other investors.
According to the manager, $150 million of the gross proceeds will be used to partially finance the proposed acquisitions of all the units in Acacia Goulburn Trust and Acacia Arthur Trust, which hold the two properties in Sydney, Australia CICT had announced it was acquiring on Dec 3.
See also: CICT's manager proposes to acquire ION Orchard at $1.85 billion, subject to EGM
See: CICT acquires two Grade A office buildings in Sydney for $330.7 mil; this is the trust's first inroad into Australia
Approximately $95.9 million of the gross proceeds will be used to partially fund potential acquisitions in Singapore and other developed markets and asset enhancement initiatives, while the remaining $4.1 million will be used to pay transaction-related fees.
The trading of the new units is expected to commence on Dec 16.
See also: CICT's manager proposes to acquire ION Orchard at $1.85 billion, subject to EGM
Shares in CICT closed down 1 cent or 0.49% lower at $2.05 on Dec 6 before trading was halted yesterday. Trading of CICT shares will recommence this morning.
Cover picture of 100 Arthur Street: CICT
