Its manager, Frasers Centrepoint Asset Management (FCAM), said yesterday that it had completed the placement of 88 million new units in FCT at $1.835 apiece.
FCL Trust Holdings, a unit of FCT's sponsor Frasers Centrepoint, will subscribe for 36.2 million units, while the remaining 51.8 million units drew demand of more than four investors for each available unit, FCAM said.
After accounting for commissions to financial advisers, underwriting fees and other expenses, the net proceeds from the placement will be about $158.7 million, which will be used to finance the acquisition of Changi City Point.
"We are delighted with the strong investor support for the placement exercise, which demonstrates their confidence in FCT and its growth strategy," said FCAM chief executive Chew Tuan Chiong.
The trust's manager signed a conditional sale and purchase agreement last month to acquire the mall for $305 million. This will increase FCT's total assets by about 14 per cent to $2.4 billion, said Dr Chew.
The deal is expected to raise the trust's distribution per unit, said FCAM. FCT will have six retail malls in its portfolio after the acquisition.
The firm added that the issue price of $1.835 per unit represents a discount of about 2.5 per cent to FCT's adjusted volume-weighted average price of $1.882 per unit for trades done on Thursday.
Existing FCT unitholders will be entitled to an advanced distribution for the period from April 1 to June 9, estimated at 2.288 cents per unit. FCAM said the advanced distribution will be paid on or around July 17.
FCT units closed 15 cents up at $1.915 yesterday.
- See more at: http://www.straitstimes.com/archive/saturday/premium/money/story/frasers-centrepoint-trust-raises-161m-changi-mall-purchase-20140531#sthash.dK9OBcHF.dpuf