Healthcare real-estate investment trust First Reit is launching a rights issue to partly finance its acquisition of two Indonesian hospitals.
The trust said on Tuesday it would raise some S$172.8 million in gross proceeds through the issuance of about 345.6 million new units.
The rights issue is offered to unitholders on a pro-rata basis of five rights units for every four existing units at a price of 50 cents apiece.
The price represents a discount of 47.4 per cent to last Thursday’s closing price of 95 cents per unit.
The money raised would be used to partly finance the acquisition of two new healthcare properties in Jakarta that cost a total of 205.5 million dollars.
First Reit intends to buy the Mochtar Riady Comprehensive Cancer Centre from Wincatch Limited for 170.5 million dollars.
It also wants to acquire Siloam Hospitals Lippo Cikarang from Lippo Karawaci for 35 million dollars.
First Reit said it would also get a new term loan facility of up to 50 million dollars to finance the acquisitions.
It said key benefits of the acquisitions include the chance to buy high-quality properties at prices below valuations and increased income stability.
First Reit will hold an extraordinary general meeting on November 29 to seek unitholders’ approval for the deals.
Source : Channel NewsAsia – 9 Nov 2010