Prime US REIT raises US$25 million from private placement, units priced at 19.35 US cents

Prime US REIT has priced its placement at 19.35 US cents per unit, which is at the lower end of the book building process.

With a total of some 129.2 million new units sold, gross proceeds of US$25 million had been raised via a private placement.

At this price of 19.35 US cents, it is a 10% discount to the volume weighted average price of 21.5 US cents on Sept 24.

"The private placement saw good participation from a quality mix of new and existing long only funds, private wealth and multi-strategy investors," says Prime US REIT.

The REIT plans to use proceeds from the placement to make its properties more attractive and to attract tenants.

In a sign of growing confidence of the US office market, it plans to increase the distribution to unitholders from 10% of distributable income to 50% for this current half year.

See also: Green Build is proposing the placement of 50 mil new shares at 1.53 cents per share for two subscribers

DBS Bank and Maybank Securities are the joint bookrunners and underwriters for this deal.