AIMS AMP Capital Industrial REIT's renounceable rights issue aims to raise S$100m

Will finance asset enhancements and acquisitions.

The Board of Directors of AIMS AMP Capital Industrial REIT Management Limited (the Manager) as manager of AIMS AMP Capital Industrial REIT has announced a 7 for 40 underwritten and renounceable rights issuance which will be open to all eligible unitholders of the Trust.

The Manager’s Chief Executive Officer, Koh Wee Lih said the Rights Issue aimed to raise gross proceeds of approximately S$100.0 million. The majority of the funds raised from the Rights Issue will be used to finance the Trust’s asset enhancement initiatives (including redevelopment projects), development projects and/or third party acquisitions in Singapore, and a portion will be used to pay down debt, working capital purposes, as well as cover the equity issuance costs.

“Since 2009, the Manager has demonstrated a strong track record of growth by successfully implementing disciplined investment strategies which include prudent acquisitions, strategic divestments and capital recycling of assets into better quality assets and the carrying out of asset enhancement initiatives.”

“The Manager continues to see a strong pipeline of potential asset enhancement initiatives, development projects and/or third party acquisitions for the Trust in Singapore. There is an estimated 801,308 sqft of untapped potential gross floor area (GFA) which represents 12.9 percent of the portfolio’s current GFA1. The funds we raise will enable us to tap these potentials and unlock the value of our existing assets and strengthen the portfolio’s long term growth potential,” Mr Koh said.

Following the Rights Issue, the Trust gearing is expected to fall to 31.92 percent, strengthening the balance sheet and providing the financial flexibility to invest in strategic development projects and potential acquisitions in Singapore.