Frasers Logistics & Industrial Trust raises $77.2m

It issued 78 million units.

Frasers Logistics & Industrial Trust (FLT) announced that it has closed its private placement exercise where it will issue 78m new units at an issue price of S$1.01 per new unit.

According to OCBC Investment Research, this represents a discount of 2.9% against its last closing price of $1.04 and translates into gross proceeds of $78.8m and net proceeds of $77.2m.

"This private placement does not come as a surprise to us, as FLT had previously indicated that it may fund its proposed acquisition of a portfolio of seven industrial properties in Australia from its sponsor for an estimated total cost of A$179.6m using a combination of debt and equity. The net proceeds raised will be used to partially finance this acquisition. We will adjust our forecasts in due course," OCBC Investment Research analyst Wong Teck Ching Andy said.