APAC REIT Capital Report: June 2020

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Sydney-listed Vicinity Centres (VCX) was among the biggest fundraisers in June, raising A$1.2bn through its fully underwritten institutional placement.

The retail REIT said 810.8m new shares were issued at A$1.48 per security, receiving strong support from existing shareholders and demand from potential new investors. 

Credit Suisse (Australia) and Macquarie Capital Australia acted as the underwriters and joint lead managers for the placements. 

In Singapore, Mapletree Industrial Trust (ME8U) raised S$410m from its oversubscribed private placement, selling more than 146.4m shares at S$2.80 per unit.

The company said the capital raising, which had originally planned to collect no less than S$350m, had attracted new and existing institutional investors.

The joint bookrunners and underwriters were Citigroup Global Markets Singapore, DBS Bank and HSBC Singapore brand.

Singapore’s Dasin Retail Trust (CEDU) also raised S$94m from the sale of more than 120m new units at S$0.78 per share.

The company said the private placement was 1.2 times oversubscribed by new and existing investors, with the funds going towards the purchase of two malls in China’s Guangdong province and other costs. 

The joint bookrunners were AMTD Global Markets, Bank of China, CLSA, DBS Bank, Haitong International Securities, Phillip Securities, and Soochow CSSD Capital Markets.

In Australia, Arena REIT (ARF) raised A$60m through a fully-underwritten institutional placement, up from A$50m due to strong investor interest, according to a statement. 

The placement was priced at A$2.28 per share, representing a 5.0% discount to its June 1 price. 

National Storage REIT (NSR) raised A$48m, up from its original A$30m cap, from its security purchase plan.

The REIT said the SSP issue, which resulted in more than 30m new stocks, followed the completion of its A$300m institutional placement earlier this week.

Ingenia Communities Group (INA) raised A$27.9m through its security purchase plan, above the original target of A$25m.

“With two acquisitions announced on 27 May and further assets under assessment, we are confident of continuing to deploy capital as we identify attractive investment opportunities,” said Ingenia Communities CEO Simon Owen. 

Charter Hall Social Infrastructure REIT (CQE) said it raised A$23.1m through its unit purchase plan, up from A$15m due to investor demand.

In Kuala Lumpur, Sunway REIT (5176) said it planned to raise RM710m through a private placement at an issue price yet to be determined. 


In Australia, the board of Cromwell Property Group (CMW) announced that it intended to reject ARA Asset Management’s takeover bid to acquire 29% of shares that it didn’t already own. 

ARA, which already owned a 24% stake in the company through subsidiaries, offered A$0.90 per share, a 3.4% premium to the last close on June 22. 

However, Cromwell said ARA’s offer was a discount of at least 10% to Cromwell’s estimated pro forma NTA per stapled security as at June 30, 2020 and ignored the value associated with Cromwell’s funds management business.

“The Cromwell Board considers the proportional offer to be an opportunistic attempt to gain control of Cromwell without offering to acquire all stapled securities or paying an appropriate control premium to Cromwell securityholders,” the company said in a statement. 

ASX-listed investment group Keybridge Capital made an all scrip takeover bid for RNY Property Trust (RNY), which is currently suspended from trading on the ASX.

RNY invests in commercial office markets in the New York Tri-State area, where it has a 75% interest in five office properties.

Keybridge was offering 0.16 KBC shares for each RNY unit, reflecting a 220% premium to the REIT’s last market trade in late March 2019.


In June, Singapore-listed OUE Commercial REIT (TS0U) priced its S$100m 4% notes due 2025, as part of its S$2bn multicurrency debt issuance programme.

Oversea-Chinese Banking Corporation and Standard Chartered Bank were appointed as joint lead managers and bookrunners of the note offering.

Starhill Global REIT (P40U) announced that it had priced S$100m of 3.15% notes due 2025, as part of its S$2bn multicurrency debt issuance programme.

In Hong Kong, Champion REIT (2778) said that it issued US$300m of 2.95% notes due 2030, as part of its HK$2bn guaranteed medium term note programme.

Tokyo-listed Mirai Corp. (3476) also announced plans to issue JPY 3bn of unsecured domestic investment corporation bonds to make acquisitions and refinance debts.

Link REIT (823) secured a five-year sustainability-linked loan of HK$1bn from OCBC Bank, marking its first sustainability-linked loan in Hong Kong dollars.

The REIT said it would use the loan for general working capital, and could receive interest rate reductions based on its ESG performance. 

Soilbuild Business Space REIT (SV3U) secured an A$80m green loan from OCBC Bank and RHB Bank Berhad, so that it could refinance its Solaris@one-north project, a business space complex that is part of the Fusionopolis cluster in Singapore.