The manager of CapitaLand Integrated Commercial Trust (CICT) has announced the proposed private placement of new units in CICT to raise gross proceeds of no less than $200 million on Dec 7.
A total of 103.6 million new units will be issued at an issue price between $1.93 to $1.981, with a potential upside option subject to demand. The issue price represents a discount of between 1.3% and 3.9% to the adjusted volume weighted average price of $2.00076 per unit.
JP Morgan and United Overseas Bank have been appointed joint bookrunners and underwriters for the private placement.
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: CICT acquires two Grade A office buildings in Sydney for $330.7 mil; this is the trust's first inroad into Australia
Approximately $45.9 million of the gross proceeds will be used to partially fund potential acquisitions in Singapore and other developed markets, while the remaining $4.1 million will be used to pay transaction-related expenses.
See also: Changes in ICR, leverage to come into effect immediately, with additional disclosures in March
Shares in CICT closed down 1 cent or 0.49% lower at $2.05 on Dec 6 before trading was halted this morning.
Cover picture of 100 Arthur Street: CICT
