CapitaLand Retail China plans S$300 million equity fundraising to finance acquisitions

SINGAPORE: CapitaLand Retail China Trust Management Limited, manager of CapitaLand Retail China Trust (CRCT) has planned an equity fundraising comprising an offering of new units in CRCT to raise gross proceeds of S$300 million.

CapitaLand has proposed a private placement of 184.41 million new units to institutional and other investors at an issue price of between S$1.193 and S$1.236 per new unit to raise gross proceeds of no less than S$220 million, subject to an upsize option to issue up to 20.956 million additional new units to raise additional gross proceeds of up to S$25 million.

CapitaLand also plans a pro rata and non-renounceable preferential offering of upto 68.997 million new units to eligible unit holders at an issue price of between S$1.17 and S$1.21 per new unit to raise gross proceeds of no less than approximately S$80 million.

The issue price per new unit for the Private Placement will be determined by the Manager and the Joint Global Co-ordinators and Bookrunners following a book-building process, and will be announced by the Manager thereafter via SGXNET.

The issue price per new unit for the Preferential Offering will be determined once the Private Placement issue price has been determined.

Citigroup Global Markets Singapore Pte. Ltd., DBS Bank Ltd. and The Hongkong and Shanghai Banking Corporation Limited, Singapore Branch have been appointed as the joint global co-ordinators and bookrunners for the Equity Fund Raising.

The company intends to use the net proceeds from the equity fund raising to finance part of the total cost of the proposed acquisition of respective interests in the companies which hold the Ascendas Xinsu Portfolio, Ascendas Innovation Towers, Ascendas Innovation Hub, Singapore-Hangzhou Science and Technology Park Phase I and II and Rock Square of approximately S$822.4 million.

CapitaLand Retail China Trust Management believes that the equity fund raising is an overall efficient and beneficial method of raising funds to partially finance the acquisition.

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