SOILBUILD BUSINESS SPACE REIT
SV3U.SI
Soilbuild REIT - Launch of preferential offering to raise gross proceeds of ~S$59.4m
- Soilbuild Business Space REIT (Soilbuild REIT) announced that it has launched a pro-rata non-renounceable preferential offering to its existing unitholders to raise gross proceeds of ~S$59.4m (net proceeds of S$59.2m) via the issuance of 94.4m new units at S$0.63 per new unit.
- This is done on the basis of one new unit for every 10 existing units held by entitled unitholders.
- The issuance price represents a discount of 7.4% as compared to its last closing price of S$0.68.
- The net proceeds raised will be utilised to partially finance the proposed acquisition of Bukit Batok Connection from its sponsor, and approval was obtained at an EGM yesterday.
- The total acquisition cost for the property is expected to be about S$100.5m. We expect the remainder to be funded by debt.
- This development does not come as a surprise to us, as we had previously highlighted our expectations that the proposed acquisition would be funded by both debt and equity.
- Maintain BUY and S$0.76 fair value on Soilbuild REIT.
Wong Teck Ching Andy CFA
OCBC Investment
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http://www.ocbcresearch.com/
2016-08-19
OCBC Investment
SGX Stock
Analyst Report
0.760
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0.760
