KEPPEL DC Real Estate Investment Trust (Reit) closed its private placement at S$2.09 apiece with 334.9 million new units issued, said the manager on Wednesday (Nov 20).
The private placement, which was 3.4 times subscribed, raised gross proceeds of about S$700 million after it was upsized. This brings the total size of the equity fundraising to about S$1.1 billion, from about S$985 million previously.
The equity funding exercise, which was announced on Tuesday, comprises a private placement, a non-renounceable preferential offering and an issuance of sponsor subscription units.
The issue price of the private placement represents an approximate 5.1 per cent discount to the volume-weighted average price (VWAP) of S$2.2017 per unit for all trades done on the Singapore Exchange on Monday, up to the time the agreement was signed on Tuesday.
For illustrative purposes, the issue price represents a 3.3 per cent discount to the adjusted VWAP of S$2.1609 per unit, after subtracting an advanced distribution of S$0.04083 per unit.
The private placement drew “strong demand from new and existing unitholders globally”, with a majority of them being long-only investors and real estate specialists, said the manager.
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Trading of the private placement units is expected to start on Nov 28.
The issue price of the preferential offering has been fixed at S$2.03 per new unit. The allotment ratio is fixed on the basis of 86 new units for every 1,000 existing units.
The issue price of S$2.03 represents a discount of about 7.8 per cent to the VWAP, and about 6.1 per cent to the adjusted VWAP – for illustrative purposes.
Some S$301.3 million is expected to be raised from the preferential offering, while about S$85 million will be raised from the issuance of sponsor subscription units.
The amount raised from the issuance of subscription units will be used to partially fund the purchase of two hyperscale data centres from the Reit’s sponsor Keppel.
The issue price per subscription unit has been fixed at S$2.09 per unit, equal to the issue price of the private placement.
About S$945.2 million or 94.4 per cent of the gross proceeds from the private placement and preferential offering will be used to partially fund the acquisition of the two data centres.
Gross proceeds from the private placement and preferential offering amount to S$1 billion.
About S$43.1 million or 4.3 per cent will be used to repay and refinance debt and/or capital expenditure, as well as pay for upgrades to properties.
Another S$13 million or 1.3 per cent is for paying estimated fees and expenses incurred by the Reit in connection with the equity fundraising exercise.
The remaining amount will be used for general corporate purposes and/or working capital purposes.
Units of Keppel DC Reit ended Monday 0.5 per cent or S$0.01 lower at S$2.19, before the trust called for a trading halt on Tuesday morning. The counter resumes trading on Wednesday.
