Prime US REIT to raise $168.04m from private placement

This will fund its acquisition in California.

Mainboard-listed Prime US REIT has issued 125.39 million units priced $1.34 (US$0.957) per unit following a private placement seeking to raise $168.04m (US$120m), the company announced.

The 4.8 times subscribed private placement was made to fund the REIT’s maiden acquisition of Park Tower in California for $231.75m (US$165.5m). About $161.03m (US$115m) will be used to partially fund the acquisition, whilst the remaining $7.00m (US$5m) will be used to pay the estimated fees and expenses incurred in from the acquisition and the private placement.

With these, the total number of units in Prime REIT in issue has reached 1.05 billion units. The new units have begun on the Mainboard of Singapore Exchange Securities Trading (SGX-ST) on 21 February.

Photo from Hines website