Mainboard-listed Cambridge Industrial Trust (CIT) is acquiring several properties for some S$37.1 million.
It said on Friday that it is entering into two separate put and call option agreements to acquire an asset located at 22 Chin Bee Drive and another located at 1 & 2 Changi North Street 2.
The building at Chin Bee comprises two levels of warehousing facilities and a mezzanine level of office space.
It also has a six-storey ancillary office and a five-storey annex comprising a workers’ dormitory.
The other buildings in Changi are five-storey light industrial buildings linked together via a two-tier overhead bridge with ancillary office space.
CIT said the target properties are quality industrial assets that have been bought at attractive yields comparable or better than yields of recent transactions in the market.
It added that the acquisition will further reduce the reliance of CIT’s income stream on any single asset and tenant.
To help fund the purchase, CIT intends to launch a private placement of around 83.5 million new units.
The units will be sold to institutional and other investors at an issue price of 47.8 cents per new unit and at 50.3 cents per new unit to the Oxley Group and Mitsui & Co.
CIT hopes to raise gross proceeds of about S$40 million through the private placement.
Source : Channel NewsAsia – 13 Aug 2010