Singapore's Ascendas REIT to buy business parks from CapitaLand for $1.2 bln (updated)

CapitaLand Ascendas REIT

01/11/2019 09:10

* Ascendas plans S$1.3 bln rights issue 
    * Deal for 28 properties in U.S., two in Singapore

 (Adds details on rights issue)
    SINGAPORE, Nov 1 (Reuters) - Ascendas Real Estate Investment
Trust  AEMN.SI  said on Friday it is buying 30 business parks in
the United States and Singapore for about S$1.66 billion ($1.22
billion) from its controlling unit holder CapitaLand Ltd
 CATL.SI . 
    The deal marks Ascendas REIT's entry into the United States,
where it is buying 28 business parks located in Raleigh,
Portland and San Diego. It plans to fund the acquisition mainly
through a S$1.3 billion rights issue and loan facilities.  
    In the rights issue, Ascendas will sell just over 498
million new units in the REIT at S$2.63 apiece, a discount of
17% to Thursday's closing price of S$3.17. It is likely to be
among the largest rights issues by a Singapore REIT.
    Several Singapore trusts, including Mapletree Commercial
Trust  MACT.SI  and Keppel Pacific Oak US Reit  KPEL.SI , have
raised capital over the last few months to fund their expansion
plans.
    Ascendas REIT's portfolio currently consists of properties
in Singapore, the United Kingdom and Australia. It embarked on a
major expansion into Australia in 2015 when it acquired 26
logistics properties for A$1 billion. (https://reut.rs/2PBNBUz)
    Real estate developer CapitaLand said in a separate
statement that it expected to realise a gain of about S$95.4
million upon completion of the deal. Including Friday's proposed
deal, CapitaLand has announced divestments of more than S$5.2
billion so far this year, it said. 
    Trading in Ascendas REIT units were halted ahead of the news
on Friday, while CapitaLand shares were 0.8% higher. 
    DBS Bank Ltd and JP Morgan (S.E.A.) Ltd are the joint lead
managers and underwriters for the rights issue.
 
    ($1 = 1.3585 Singapore dollars)

 (Reporting by Aradhana Aravindan in Singapore; Editing by
Muralikumar Anantharaman and Susan Fenton)
 ((aradhana.aravindan@thomsonreuters.com; +65 6403 5659;))