SINGAPORE, Nov 4 — Ascott Residence Trust (Ascott Reit) has launched an underwritten renounceable rights issue to raise approximately S$253.7 million (RM647.6 million).
In a statement, it said existing unitholders will be offered 253.7 million rights units at a ratio of one unit for every five units already held as at the book closure date.
The rights units will be issued at S$1.00 each. This is at a discount of approximately 22.5 per cent to the closing price of S$1.29 per unit today and a discount of approximately 19.5 per cent to the theoretical ex-rights price.
Ascott Residence Trust Management Ltd (ARTML) chairman Lim Jit Poh said: “The rights issue will enhance Ascott Reit’s financial flexibility to tap future growth opportunities.”
He said it will also increase Ascott Reit’s trading liquidity and enhance its credit profile.
“Unit holders will be able to subscribe for the rights units and benefit from Ascott Reit’s future growth strategies.
“There is a strong pipeline of potential acquisitions from our sponsor, The Ascott Ltd (Ascott), and third parties.
“We will continue to seek acquisition opportunities in key gateway cities in China, Japan, Malaysia, Australia and Europe.
Ascott Reit will also continue to invest on refurbishing our properties to drive organic growth,” he said.
Ascott Reit is managed by Ascott Residence Trust Management Ltd, a wholly-owned subsidiary of Ascott and an indirect wholly-owned subsidiary of CapitaLand Ltd, one of Asia’s largest real estate companies. — Bernama
