Elite Commercial REIT has successfully raised GBP28 million ($47.5 million) through its preferential offering, which was oversubscribed.
The offering offered 103.35 million new units to its existing unitholders at a ratio of 214 preferential offering units for every existing 1,000 units. The offering’s issue price of 27 British pence represented a 10% discount to the volume weighted average price (VWAP) of the REIT’s unit price of 30 British pence on Dec 18, 2023.
At its close on Jan 10, the REIT received valid acceptances of units totalling 125.23 million units, translating to an overall subscription rate of about 121.2% based on the original number of preferential offering units available.
The REIT’s sponsors, Elite Partners Holdings and Sunway RE Capital, as well as its substantial unitholders – Ho Lee Group Trust2, and Partner Reinsurance Asia Pte. Ltd., Partner Reinsurance Company Ltd. and Partner Reinsurance Europe SE, have accepted, subscribed and paid in full for its total pro rata provisional allotment of the preferential offering units.
Sunway RE Capital had subscribed for excess units in the preferential offering and has been allotted a total of 37.28 million of the preferential offering units. Sunway RE Capital now has a total of units representing 11.2% in the REIT, up from its previous stake of 5.8%.
“The strong support we received from our unitholders and sponsors for this preferential offering is a resounding endorsement of the long-term growth potential of Elite REIT and the underlying value in Elite REIT’s portfolio of assets. As we forge ahead to position Elite REIT for growth, reinforcing our capital structure is our near-term focus. With the successful completion of the Preferential Offering, we are turning our attention next to the refinancing task at hand, extending Elite REIT’s leases, and future phases of growth,” says Joshua Liaw, CEO of the manager.
See also: Changes in ICR, leverage to come into effect immediately, with additional disclosures in March
The preferential offering units are expected to be listed on the Singapore Exchange S68 ’s (SGX) Mainboard from 9am on Jan 18.
CGS-CIMB Securities (Singapore) and RHB Bank Berhad were the joint underwriters.
Units in Elite Commercial REIT closed at 28 British pence on Jan 15.
