ESR-REIT raises $100m from upsized private placement

The fixed issue price of $0.515 apiece was at the lower end of its $0.515-$0.525 range.

ESR-REIT saw its gross proceeds from a private placement of around 194.17 million new units bump up from $75m to $100m after its upsize option was exercised in full, a filing with the Singapore Exchange (SGX) revealed.

Joint global co-ordinators and bookrunners Citigroup Global Markets Singapore and RHB Securities Singapore closed the book of orders for the private placement.

The issue price was fixed at $0.515 apiece, which was at the lower end of the $0.515-$0.525 range it announced earlier. The price is said to represent a discount of around 8.3% to the volume weighted average price (VWAP) of $0.5616 per unit for all trades in the units done on Singapore Exchange Securities Trading (SGX-ST) for the preceding market day on 14 June, up to the time the placement agreement was signed on 17 June.

The private placement is part of an equity fundraising, which also comprises a preferential offering, aiming to raise $150m. Of this $150m, an estimated $44.4m will fund its acquisition of a logistics property at 48 Pandan Road, whilst around $45.7m will fully finance ESR-REIT’s asset enhancement initiative works (AEI) at two existing assets.

Also read: ESR-REIT JV to buy logistics property for $225m

Another $56.8m will be set aside to repay the firm’s existing debts and $3.1m earmarked to repay transaction related expenses, which includes the underwriting and selling commission and expenses related to the equity fund raising.

ESR FUnds Management will make a formal application to the SGX-ST for the listing of, dealing and quotation of the new units to be issued pursuant to the private placement on the mainboard of the SGX-ST. The trading of the new units is expected to commence at 9 a.m. on or around 26 June.