Frasers Centrepoint Trust subscribes for full allocation in Hektar REIT rights issue

Proceeds from the rights issue will fund the acquisition of a Malaysian mall.

Frasers Centrepoint Trust (FCT) has subscribed for its full allocation in the rights issue of Hektar Real Estate Investment Trust (Hektar REIT).

According to an announcement, the issue price is worth 35 cents (RM1.11) per unit. There will be seven rights units for every 46 existing units.

Hektar REIT acquired 1Segamat Shopping Centre in Malaysia, which has a net lettable area (NLA) of around 223,438 sqft.

The proceeds from the rights issue will partially fund 1Segamat's acquisition.

The rights subscription of $6.7m (RM21.10m) was handled by FCT’s internal resources.

Currently, FCT holds 143,898,398 units or around 31.15% in Hektar REIT.

The subscription is not expected to affect FCT's current performance.