OUE Commercial REIT issues 233 million new units in private placement
OUE Commercial REIT announced on 9 March that it will proceed to issue a total of 233,281,400 new units in respect of a private placement exercise that was first announced the previous day.
The new units will be issued to qualified investors at 64.3 cents each.
OUE Commercial REIT filed a disclosure with the Singapore Exchange close to midnight on 8 March, announcing that it was executing the private placement exercise to raise total proceeds of up to $150 million (US$105 million), including an ‘upsize option’ for an additional $50 million.
The REIT subsequently announced early the next morning that order book for the placement exercise has closed.
“The placement attracted strong demand, with expressions of interest coming from institutional and local investors and the upsize option has been exercised”, said OUE Commercial REIT in its announcement on 9 March.
Approximately $148.5 million from the proceeds will be used to partially repay the REIT’s existing borrowings, while the remaining $1.5 million will be used to pay placement commissions, fees, and expenses.
“Notwithstanding its current intention, the manager may, subject to relevant laws and regulations, use the net proceeds from the private placement at its absolute discretion for other purposes, including without limitation, for working capital requirements”, said the office REIT.
OUE Commercial finished the trading day about 0.7% lower from its previous close on the Singapore Exchange to end at SGD0.68.
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