Key Points
- Acquisition of 25 Tai Seng Avenue, 511 & 513 Yishun Industrial Park a and potential acquisitions of two properties in the western part of singapore.
- Equity fund raising to raise up to S$50.4 million.
- Equity Fund Raising to comprise:
- Private Placement of 56,498,000 new units in Cambridge Industrial Trust to raise gross proceeds of approximately S$30.0 million
- Preferential Offering of up to 38,483,354 new units in CIT to raise gross proceeds of up to approximately S$20.4 million
- New units to be offered at a price of S$0.531 for the Private Placement and S$0.531 for the Preferential Offering.
- Retail Offering to be made on the basis of each unitholder having a preferential offer of one (1) Preferential Unit for every twenty five (25) existing units in CIT held by entitled unitholders as at 5.00 p.m. on 29 October 2010, plus the opportunity to apply for additional units.
- Net proceeds to be used to part‐finance two (2) announced properties and two (2) potential acquisitions, all located in Singapore, with aggregate cost of approximately S$74.3 million.
- Expected benefits to CIT from the addition of these properties:
- Improvement in asset quality through an enlarged portfolio;
- Improved portfolio and tenant diversification; and
- Positive impact on weighted average lease tenure and weighted average lease expiry
- Post‐completion of the Equity Fund Raising, CIT’s gearing level is estimated to fall from 39.2% to 38.6%, strengthening CIT’s capital structure.
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