Ascott Residence Trust to raise S$254 milllion in rights issue
SINGAPORE - Ascott Residence Trust, a real estate investment trust, said on Monday it planned to raise S$253.7 million through a rights issue mainly to pay down its debt, Dow Jones Newswires reported.
SINGAPORE - Ascott Residence Trust, a real estate investment trust, said on Monday it planned to raise S$253.7 million through a rights issue mainly to pay down its debt, Dow Jones Newswires reported.
The trust, sponsored by Ascott, the serviced-residence arm of Singaporean developer CapitaLand, plans to issue 253.7 million new units at S$1.00 each, it said in a filing with the Singapore Exchange. The price marked a 22.5 per cent discount from the stock’s Monday closing price of S$1.29.
Ascott REIT’s existing unitholders would be offered one new unit for every five units they hold, the trust said. The trust said the fund-raising would improve “Ascott REIT’s ability to pursue potential acquisitions,” by boosting its debt profile and potentially allowing it to borrow money more cheaply in the future.
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