Lendlease Global Commercial REIT units dropped after its preferential offering of $196.6 million was not fully taken up.
As at 9.57 am, Lendlease REIT units dropped 3.48% to 55.5 cents. It is the fourth most heavily traded counter thus far today.
According to Lendlease REIT, it received total applications of just over 219.14 million units, equivalent to 62.19% of the total offering. Lendlease REIT is raising funds to help pay for the acquisition of the remaining stake 30% in Paya Lebar Quarter it does not already own.
Under terms of the offering, DBS Bank, Oversea-Chinese Banking Corporation, United Overseas Bank and the REIT manager will take up the rest of the units not spoken for.
The preferential offering of nearly 352.4 million units were priced at 55.8 cents each at a ratio of 119 new units for every 1,000 existing units.
Around $113.8 million in proceeds to be raised will be used to fund the acquisition, and the remainder will be used to reduce debt at Lendlease REIT level to ensure that consolidated gearing is maintained at 37.6% on a pro forma basis.
