By P.R. Venkat
Ascendas Real Estate Investment Trust (A17U.SG) said Friday that it is buying business parks in the U.S. and Singapore for 1.66 billion Singapore dollars (US$1.22 billion) as it seeks to expand its presence in the technology, financial and medical sectors.
The acquisition would include 28 properties in the U.S. and two in Singapore, Ascendas REIT said in a statement.
The properties are being acquired from CapitaLand Ltd. (C31.SG).
Ascendas REIT is planning to fund the acquisition through a mix of equity and debt. Under the plan, Ascendas REIT will issue 498.04 million new units through a rights issue to raise S$1.31 billion in gross proceeds. Separately, the company also plans to drawdown on loan facilities, the statement said.
The REIT is planning to sell each unit at S$2.63, which is a 17.0% discount to Thursday's closing price of S$3.17.
With the proposed acquisitions, Ascendas REIT would own a total of 99 properties in Singapore, 35 properties in Australia, 38 properties in the U.K. and 28 properties in the U.S., the company said.
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