SINGAPORE (Sept 13): Mapletree Logistics Trust is planning an equity fund raising to raise gross proceeds of up to $640 million to partially fund its latest acquisition in Hongkong and finance redemption of perpetual securities.

The equity fund raising consists of a private placement at new units at an issue price of between $1.143 and $1.175 to raise gross proceeds of between $353.5 million and $361.5 million and a preferential offering on the basis of one new MLT unit for every 10 existing units to eligible unitholders at an issue price of between $1.113 and $1.145.

The private placement issue price range represents a discount of between 5.4% and 2.7% to the volume weighted average price (VWAP) of $1.2077 per unit of all trades done on Wednesday.

About $480.6 million or 75% of the gross proceeds of the equity fund raising will be used to finance part of the total purchase consideration of Mapletree Logistics Hub Tsing Yi which was approved by unitholders today, says Mapletree Logistics Trust Management.

Another $146.9 million or 23% of the gross proceeds will be used to finance part of the redemption of the $350.0 million 5.375% perpetual securities issued on March 19 2012 and callable on Sept 19 2017.

The balance of the gross proceeds will be used to pay the estimated professional and other fees and expenses of $12.5 million in connection with the acquisition, the equity fund raising and the redemption of the existing perpetual securities.

The story, written by PC Lee, first appeared in The Edge Singapore.