SG-listed CapitaLand Retail China Trust plans to raise $203m in equity placement

Picture of CapitaMall Yuhuating in Changsha, China (Source: CapitaLand Retail China Trust Management Limited website)

China-focused and Singapore Mainboard-listed CapitaLand Retail China Trust has closed its latest private placement offering, raising S$154.30 million ($111.97 million) in gross proceeds. The private placement is part of the total equity placement offering, comprising a private placement and preferential offerings amounting to approximately S$279.40 million ($203.17 million) launched on August 01, 2019.

The gross proceeds will be used to finance the acquisition costs of three retail mall properties in China.

In June 2019, CapitaLand Retail China Trust Management Limited acquired 100 per cent interests in three companies that hold three multi-tenanted malls in China for RMB2.960 billion ($430 million). The three assets are  CapitaMall Xuefu, CapitaMall Aidemengdun in Harbin and CapitaMall Yuhuating in Changsha.

As part of the private placement component, CRCT issued 105.04 million new units priced at $1.07 apiece to raise  A$154.30 million ($112.20 million). And, the REIT issued 86.87 million new units priced at $1.05 apiece, raising S$125.10 million ($90.97 million) as part of the preferential offering.

The private placement issue price is also priced at a discount of 6.6 per cent to the volume weighted average price (VWAP) of S$1.5728 per unit ($1.140 per unit) as of August 01, 2019, while the preferential offering issue price is priced at the discount of 8.4 per cent of the VWAP of S$1.5728 per unit ($1.140 per unit).