The REIT will spend about $12.5 million for the redevelopment.

The manager of CapitaLand Ascendas REIT A17u has announced that it will use 2.5% of the gross proceeds of about $500 million from a private placement to partially finance the proposed redevelopment of a logistics property in Singapore. This figure totals some $12.5 million. 

The REIT carried out private placements of 183,352,000 units in May 2023. 

As of the date of the announcement on Oct 25, details of the use of proceeds from the private placement are as follows.

The partial funding of acquiring Seagate’s Singapore R&D facility for $139.5 million, partial funding of key asset in Europe for $129.9 million, partial financing of redevelopment of logistics property in Singapore for $64.4 million, debt repayment for $160.4 million, and fees and expenses payment for $5.8 million. 

The manager says that it will make further announcements on the utilisation of the remaining proceedings when such funds are materially used.

Units in CapitaLand Ascendas REIT closed flat at $2.75 on Oct 25.