Key Points
- Proposed acquisition of three properties for an aggregate purchase consideration of S$116.8 million on a sale-and-leaseback basis to respective vendors for lease terms of between 5 and 6 years with options to renew.
- CIT’s unitholders (“Unitholders”) are invited to participate in the Rights Issue to raise gross proceeds of approximately S$56.7 million, plus an opportunity to apply for Excess Rights Units.
- Rights Issue will be offered on a 1-for-8 basis (fractional entitlements to be disregarded) at a price of S$0.429 per Rights Unit (the “Issue Price”) which is at a 15.0% discount to the closing price of S$0.505 per Unit on the SGX-ST on 10 March 2011 and a 13.7% discount to TERP.
- The Manager of CIT has undertaken to support the Rights Issue by Subscribing for the Rights Units represented by its Rights Entitlements.
- Expected benefits of the Acquisitions (as defined herein) and the Rights Issue (collectively, the “Transactions”) to Unitholders:
- Enhancing and improving the quality of CIT’s portfolio (the “Portfolio”) and increasing the size of the Portfolio thus generating economies of scale
- Pro forma DPU accretion and pro forma distribution yield of 10.1% for existing Unitholders
- Improving Portfolio and tenant trade sector diversification
- Positive impact on the weighted average lease expiry and lease expiry profile
- Potential increase in liquidity through the Rights Issue
- Providing Unitholders with the pro-rata opportunity to participate in the growth of CIT at an Issue Price which is at a discount to the closing price per Unit
- The Rights Issue is expected to close on 6 April 2011 at 5.00 pm (for manual
applications) and at 9.30 pm (for Electronic Applications).
- Cambridge issues and list 38,483,354 new units pursuant to the preferential offering - 18 NOV 2010
- Cambridge Notice of Advanced Distribution - 18 NOV 2010
- Cambridge to Launch Equity Fund Raising to raise up to S$50.4m for the acquisitions of 4 properties - 21 OCT 2010
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