CapitaLand Ascendas REIT f.k.a. Ascendas Reit *Official* (SGX: A17U)

[farouk]

Breaking news copied from REITSWEEK. Consider a good buy? Placement going at about 5% discount of closing price yesterday.

Ascendas REIT To Raise S$350 Million in Placement

Singapore-listed industrial landlord Ascendas REIT (A-REIT)(SGX:A17U) has announced its intention to carry out a placement of 140 million new units at an issue price of between S$2.50 and S$2.55. The placement is to raise gross proceeds of at least S$350 million for the purpose of new property acquisitions in Singapore.

Out of the projected S$350 million raised, S$126 million is expected to be used to fund the potential acquisition of a property located within Singapore Science Park II that is described to be easily accessible through Pasir Panjang Road and the nearby Haw Par Villa MRT station.

Approximately S$210 million will be used to partly fund the potential acquisition of an integrated industrial mixed use property at Kallang Avenue described as being in close proximity to the Lavender MRT station and fringes of the CBD.

The remaining S$5.4 million will be used to pay the estimated fees and expenses that will be incurred from the above acquisitions.

The issue price range of between S$2.50 and S$2.55 per new unit represents a discount of between 3.1 per cent and 5 per cent to the volume weighted average price of S$2.63 per unit in A-REIT at the close of the market on the 7 March 2013.

Final price of the placement is expected to be announced soon. The placement will be managed by Citigroup Global Markets Singapore Pte. Ltd. and DBS Bank Ltd

 

[Paul Lee]

These are not offered to retail investors. Only institutional investors.

 

[Dividends Warrior]

Breaking news copied from REITSWEEK. Consider a good buy? Placement going at about 5% discount of closing price yesterday.

Ascendas REIT To Raise S$350 Million in Placement

Singapore-listed industrial landlord Ascendas REIT (A-REIT)(SGX:A17U) has announced its intention to carry out a placement of 140 million new units at an issue price of between S$2.50 and S$2.55. The placement is to raise gross proceeds of at least S$350 million for the purpose of new property acquisitions in Singapore.

Out of the projected S$350 million raised, S$126 million is expected to be used to fund the potential acquisition of a property located within Singapore Science Park II that is described to be easily accessible through Pasir Panjang Road and the nearby Haw Par Villa MRT station.

Approximately S$210 million will be used to partly fund the potential acquisition of an integrated industrial mixed use property at Kallang Avenue described as being in close proximity to the Lavender MRT station and fringes of the CBD.

The remaining S$5.4 million will be used to pay the estimated fees and expenses that will be incurred from the above acquisitions.

The issue price range of between S$2.50 and S$2.55 per new unit represents a discount of between 3.1 per cent and 5 per cent to the volume weighted average price of S$2.63 per unit in A-REIT at the close of the market on the 7 March 2013.

Final price of the placement is expected to be announced soon. The placement will be managed by Citigroup Global Markets Singapore Pte. Ltd. and DBS Bank Ltd

U are not BBs, u cannot buy.

 

[addict951]

AREIT 4ever placement 1
every qtr 1 placement

 

[farouk]

These are not offered to retail investors. Only institutional investors.

I see. Thanks Paul. Just as I thought of diversifying into industrial reits as most of my holdings are commercial reits like CMT and MGCCT

 

[farouk]

Anyway pardon my noob question, how do we know from a news report if the placement is open to institutional investors only or open to individual investors also?

 

[Paul Lee]

AREIT 4ever placement 1
every qtr 1 placement

Agree. But isn't it also a validation that with prudent capital management and yield accretive acquisitions, it doesn't matter how often placement are carried out?

And doesn't it also quash the anti-REIT camp's argument that REITs have to resort to dilutive rights issue for equity to fund acquisitions?

So despite all that you have said and its considerable capital appreciation last yr, its yield is still higher than other REITs which I consider to be of lesser quality. hmm... its off my radar for too long, need to assess whether to add more [vested - of cos]

 

[Paul Lee]

I see. Thanks Paul. Just as I thought of diversifying into industrial reits as most of my holdings are commercial reits like CMT and MGCCT

You can buy straight from the market. Dun have to wait for such equity raising exercise; which if you are not a current unitholder, it may not be opened to you anyway.

Anyway pardon my noob question, how do we know from a news report if the placement is open to institutional investors only or open to individual investors also?

Very simple. Such placement are mostly just for institutional investors. Usually by the time the announcement is made, they would have place out all the units (hence the name - placement)

Its very rarely opened to retail investors. If it is, there will be a big announcement and full page advertisement in the papers. You wont miss it. I can only remember 2 such placement for retail. One was CMT (which was how I bought into CMT in the first place). Another was MLT which was a first-come-first-serve exercise at the ATM. I was 2nd in the queue at a ulu ATM for that one and still din get any! All units on offer was gone in a few minutes! So it was really fastest fingers first!

 

[addict951]

I see. Thanks Paul. Just as I thought of diversifying into industrial reits as most of my holdings are commercial reits like CMT and MGCCT

can buy ah
later AREIT un'H', the share price will move close to placement px
then u start moving in liao

 

[Carnage]

Now is CDH

 

[SpeedingBullet]

Areit always does pte placement, nth new. Altho I'd like to add in more to my vested interest.

 

[farouk]

Breaking news copied from REITSWEEK. Consider a good buy? Placement going at about 5% discount of closing price yesterday.

Ascendas REIT To Raise S$350 Million in Placement

Singapore-listed industrial landlord Ascendas REIT (A-REIT)(SGX:A17U) has announced its intention to carry out a placement of 140 million new units at an issue price of between S$2.50 and S$2.55. The placement is to raise gross proceeds of at least S$350 million for the purpose of new property acquisitions in Singapore.

Out of the projected S$350 million raised, S$126 million is expected to be used to fund the potential acquisition of a property located within Singapore Science Park II that is described to be easily accessible through Pasir Panjang Road and the nearby Haw Par Villa MRT station.

Approximately S$210 million will be used to partly fund the potential acquisition of an integrated industrial mixed use property at Kallang Avenue described as being in close proximity to the Lavender MRT station and fringes of the CBD.

The remaining S$5.4 million will be used to pay the estimated fees and expenses that will be incurred from the above acquisitions.

The issue price range of between S$2.50 and S$2.55 per new unit represents a discount of between 3.1 per cent and 5 per cent to the volume weighted average price of S$2.63 per unit in A-REIT at the close of the market on the 7 March 2013.

Final price of the placement is expected to be announced soon. The placement will be managed by Citigroup Global Markets Singapore Pte. Ltd. and DBS Bank Ltd

Interesting story about the fastest fingers first. Didn't know some REITs would do that. Thanks for sharing your insights as they have been useful in my understanding

 

[Setmax]

$2.54 on Monday ?

 

[lzydata]

Given that the manager raised more than originally targeted and the price $2.54 is at a 35% premium to NAV and a standard 4% discount to the last traded price at $2.65, I think almost all present unitholders whose cost basis is far less should be very happy. And this is before considering the acquisitions that most of this money will be used for.

We can easily work out a "theoretical ex-placement price". Units in issue and to be issued as of 31 Dec 2012 was 2,239,184,937. The new 160m units thus represent a 7.145% growth in units. The TEPP is (2.65+2.54x0.07145)/1.07145 = $2.64. In other words, not much change.

 

[Dividends Warrior]

Placement means there is huge institutional demand. Good sign.

 

[Vincent_G]

Sorry, noob question.. What will be the impact to normal shareholder like us??

 

[princessreiko]

SINGAPORE — Ascendas Real Estate Investment Trust (A-Reit) said yesterday it will help fund two industrial property purchases from a private placement worth S$406.4 million.

Due to strong demand, it will sell 160 million new units — up from 140 million — to institutional and other investors at S$2.54 per unit, a 3.5 per cent discount from the volume-weighted average price of S$2.6328 on Thursday. The proceeds will fund potential property purchases in Science Park II and Kallang Avenue.


A-Reit raises S$406m in placement | TODAYonline

Who are the other investors?

 

[Dividends Warrior]

Growth growth growth!!!

 

[princessreiko]

Hi sifus and gurus, is ascendas india reit related to this ascendas reit?
Will there be any impact if the india reit under perform or are they separate entities?
TIA.

 

[Paul Lee]

Hi sifus and gurus, is ascendas india reit related to this ascendas reit?
Will there be any impact if the india reit under perform or are they separate entities?
TIA.

I believe Ascendas managed both. Ascendas India is not a REIT but a business trust. They are separate entities (if you see 2 listing in SGX, then they are separate). So no impact on Ai-Trust.