Mapletree Industrial Trust raises $400m through oversubscribed private placement

It will be used to partially fund acquisitions and investments in North American data centres.

Mapletree Industrial Trust (MIT) has raised $400 through an oversubscribed private placement where it issued 176.6 million additional new units with the issue price fixed at $2.256 per new unit, the company announced.

The placement was approximately 6.3 times covered at the top end of the issue price range, prompting its joint bookrunners and underwriters DBS Bank, HSBC, and UBS to close the books of orders on 17 September.

Also read: Mapletree Industrial Trust to raise $350m through private placement

MIT made use of its upsize option and issued an additional 18.3 million units. The issue price represents a discount of approximately 2.7% to the volume weighted average price (VWAP) of $2.3278 per unit for all trades done on Singapore Exchange Securities Trading Limited (SGX-ST) for the preceding market day on 16 September up to the time that the placement agreement was signed on 17 September, said MIT.

Approximately $393.6m or 98.4% of the gross proceeds will be used to partially fund the MIT Total Acquisition Cost amounting to $965m to acquire 10 powered shell data centres and co-invest in three turnkey data centres in North America.

Meanwhile, the remaining $6.4m or 1.6% of the funds will be utilised to pay the estimated fees and expenses incurred or to be incurred by MIT in relation to the placement.