Suntec REIT to raise $418m net in private placement

Suntec Real Estate Investment Trust is launching a private placement of between 310.7 million and 320 million new units at an issue price of between $1.34 and $1.38 each.

In a stock exchange filing yesterday, Suntec REIT said the net proceeds of the placement would amount to around $417.9 million, after deducting estimated fees and costs.

This amount will be used to finance part of the REIT’s $1.49 billion acquisition of a one-third interest in the Marina Bay Financial Centre Towers 1 and 2, the Marina Bay Link Mall and 695 car park lots.

The balance of the acquisition will be financed with borrowings, Suntec REIT said.

Suntec REIT had bought the interest through the acquisition of one-third of the issued share capital of BFC Development.

The acquisition, which was announced in October, will increase the net lettable area in Suntec REIT’s office portfolio from some 1.9 million sq f to about 2.4 million sq f.

Suntec REIT said the trust manager would declare a distribution for the period from Oct 1 to Dec 8, which is the day immediately preceding the expected date on which the new units are issued.

The advance distribution is intended to ensure that the distributable income accrued by Suntec REIT up to the day immediately preceding the date of issue of the new units is paid out to the existing units, to ensure fairness.

Source : Today – 30 Nov 2010

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