O’Melveny Represents Underwriters in Private Placement of Frasers Commercial Trust’s REIT UnitsJuly 24, 2015 FOR IMMEDIATE RELEASE
O’Melveny & Myers LLP
SINGAPORE--JULY 24, 2015 --O’Melveny & Myers LLP represented Barclays, Citigroup and DBS Bank as international counsel to the joint placement agents and underwriters in connection with the placement by Singapore-listed real estate investment trust Frasers Commercial Trust of 96 million REIT units for proceeds of approximately SG$142 million.
The Singapore-based O'Melveny team was led by partner Andrew Hutton who was assisted by counsel Michele Discepola and trainee solicitor Simon Ellis.
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The following press release was issued by Frasers Commercial Trust:
Frasers Commercial Trust successfully raises gross proceeds of S$142.1 million from upsized private placement of 96,000,000 New Units
• Private Placement of S$142.1 million was over two times subscribed, on the back of strong demand from existing and new institutional investors
• Private Placement at S$1.48 per Unit, which was priced at the top end of the price range, represents a tight discount of 1.6% to the adjusted volume weighted average price of S$1.5046
• Net proceeds of S$122.7 million will be used to part finance the acquisition of 357 Collins Street in Melbourne, Australia
• Remaining proceeds of S$17.5 million will be used to pay down existing debt and/or for general working purposes
Singapore – 24 July 2015 – Frasers Centrepoint Asset Management (Commercial) Ltd (“FCAMCL” or the “Manager”), the manager of Frasers Commercial Trust (“FCOT”, SGX:Frasers Comm Tr), is pleased to announce that the Trust has successfully raised gross proceeds of S$142.1 million from a private placement (the “Private Placement”) of 96,000,000 million new Units (“New Units”) at an issue price of S$1.48 per New Unit (“Issue Price”). The Issue Price was at the top end of the price range and the Private Placement was upsized 14.3% to S$142.1 million, after FCOT received strong demand from existing and new institutional investors.
The net proceeds from the Private Placement amount to approximately S$140.2 million, of which S$122.7 million will be used to part finance the acquisition of 357 Collins Street in Melbourne, Australia and the remaining proceeds of S$17.5 million will be used to pay down
existing debt and/or for general working purposes.
The Issue Price represents a tight discount of 1.6% to the adjusted volume weighted average price of S$1.5046 per Unit for trades done on the SGX-ST for the preceding market day on 22 July 2015 and up to the time the placement agreement was signed on 23 July 2015. Frasers
Centrepoint Limited has undertaken to subscribe for 23,100,000 New Units under the Private Placement at the Issue Price. The demand book for the remaining 72,900,000 New Units was over two times subscribed.
Mr Low Chee Wah, Chief Executive Officer of the Manager, said “We are pleased with the positive response and strong demand from investors for the Private Placement which are a testament to their confidence in FCOT and would like to thank them for their support. 357 Collins Street will be a strategic addition to FCOT’s existing portfolio, with its strategic location right in the heart of the Melbourne Central Business District and good connectivity. Following the Private Placement, the market capitalisation of FCOT will increase, thereby improving liquidity.”
The Private Placement is subject to the approval in-principle of the SGX-ST for the listing of, dealing in, and quotation of, the New Units on the Main Board of the SGX-ST. The New Units are expected to be listed on 3 August 2015.
DBS Bank Ltd. is the financial adviser in relation to the Private Placement and the joint placement agents and underwriters for the Private Placement are Barclays Bank PLC, Singapore Branch, Citigroup Global Markets Singapore Pte. Ltd and DBS Bank Ltd.
In conjunction with the Private Placement, the Manager intends to declare an advanced distribution (“Advanced Distribution”) of FCOT’s distributable income for the period from 1 July 2015 to 2 August 2015, to the existing unitholders of FCOT. The New Units will not be entitled to the Advanced Distribution. The distribution per unit under the Advanced Distribution is estimated to be 0.7805 cents per Unit. The actual quantum will be announced at a later date, after the management accounts of FCOT for the relevant period have been finalised.
The next distribution following the Advanced Distribution will comprise FCOT’s distributable income for the period from 3 August 2015 to 30 September 2015. Quarterly distributions will resume thereafter.
The books closure date for the Advanced Distribution is 31 July 2015 at 5.00 p.m. and the Advanced Distribution will be paid on or around 1 October 2015.
Analyst and media contact:
Ms. Wang Mei Ling
Senior Manager, Investor Relations
Frasers Centrepoint Asset Management (Commercial) Ltd
Tel: +65 6277 2509