<article>Singapore-listed<a href="http://www.vivaitrust.com/" target="_blank"> VIVA Industrial Trust </a>Thursday announced it was issuing new stapled securities to raise up to S$65 million, and added that it would use the proceeds to enhance Technopark@Chai Chee (TPCC).</article>

Singapore-listed<a href="http://www.vivaitrust.com/" target="_blank"> VIVA Industrial Trust </a>Thursday announced it was issuing new stapled securities to raise up to S$65 million, and added that it would use the proceeds to enhance Technopark@Chai Chee (TPCC).
The private placement will remain open until 5 June 2015.
Viva will first issue 50.96 million new stapled securities at a price of S$0.785 apiece, translating to gross proceeds of about S$40 million, and if oversubscribed, it plans to issue another 31.8 million additional new stapled securities to raise a further S$25 million.
&#8220;About S$63.0 million, equivalent to 96.9 per cent of the maximum gross proceeds of the private placement, will be used to  asset enhancement initiative (AEI)  at Technopark@Chai Chee (TPCC) including the differential premium and other incidental costs payable to the relevant authorities and the costs of the addition and alteration works,&#8221;  the company said.
With these asset enhancement initiative, TPCC will be able to continue to attract creditworthy tenants and the Managers will be able to negotiate better rental rates and enhance distributable income to stapled securityholders, the company added.
The issue price represents a discount of 5.2 per cent to the trust&#8217;s volume-weighted average price of S$0.828 on June 3.
Viva Industrial Trust is a Singapore-focused business park and industrial property trust which comprises Viva Industrial Real Estate Investment Trust (VI-REIT) and Viva Industrial Business Trust (&#8220;VI-BT&#8221;).
After the completion of the private placement, and assuming the upsize option is fully exercised, the free float of VIT is expected to increase by 9.6 per cent from 17.4 per cent to 27.0 per cent.
Post-AEI, the company said it expects an incremental annual net property income of S$9.8 million, which translates to a projected return on investment of 12.1 per cent per annum based on a capital outlay of S$81.0 million. Early indications from an independent valuer also suggests that the capital value of the asset could increase by S$184.7 million from S$195.3 million4 to approximately S$380.0 million post completion of the AEI, it added in a regulatory disclosure.
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Singapore-listed VIVA Industrial Trust Thursday announced it was issuing new stapled securities to raise up to S$65 million

Viva Industrial Trust to raise up to S$65m through private placement

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Viva Industrial Trust to raise up to S$65m through private placement

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