Soilbuild REIT - OCBC Investment 2016-08-19: Launch of preferential offering to raise gross proceeds of ~ S$59.4m

Soilbuild REIT - OCBC Investment 2016-08-19: Launch of preferential offering to raise gross proceeds of ~S$59.4m 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 | http://www.ocbcresearch.com/ 2016-08-19
OCBC Investment SGX Stock Analyst Report BUY Maintain BUY 0.760 Same 0.760


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