FCT raise $575m from private placement

The placement was approximately 2.8 times oversubscribed.

Frasers Centrepoint Trust (FCT) has raised $575m from its equity fund raising (EFR), the company revealed in a local bourse filing.

The private placement was approximately 2.8 times subscribed. It came at an  issue price of $2.35, which represents a 4.9% discount to the Adjusted VWAP of $2.4723 per unit.

The total fundraising amount of $1.33b comprise more than 45% of FCT’s present market capitalisation, according to Richard Ng, CEO of Frasers Centrepoint Asset Management (FCAM).

FCAM will use $1.02b, or 76.3% of the 1.33b gross proceeds, to fund the purchase of AsiaRetailFund (ARF).

Also Read: Frasers Centrepoint Trust buys remaining 63.1% capital in AsiaRetail Fund for $1.06b

A further $32.1m will be used to pay the estimated stamp duties, professional and other fees and expenses incurred or to be incurred by FCT in connection with the ARF Acquisition and the EFR.

It will also probe roughly $284.9m, equivalent to around 21.3% of the gross proceeds, to pare down existing indebtedness.

Together with the preferential offering, the total EFR of approximately $1.33b is the largest ever follow-on EFR by a Singapore REIT.