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Property News

Hektar REIT proposes 20% private placement to raise RM53.6 mil

KUALA LUMPUR (Oct 11): Hektar Real Estate Investment Trust (REIT) has proposed to undertake a private placement of up to 20% of the total number of issued units of the company to third-party investors to be identified later.
In a filing with Bursa Malaysia on Wednesday, Hektar REIT said the indicative issue price of the placement units is assumed to be 53 sen each. Based on the indicative issue price, the proposed private placement is expected to raise gross proceeds of up to RM53.64 million.
The utilisation of proceeds of RM52.5 million would be used for future viable investments within 24 months from completion.
“The proposed private placement may be implemented subject to the board’s approval, in a single tranche or in multiple tranches, within six months from the date of approval of Bursa Securities for the listing and quotation of the placement units,” it said.
The proposal would enable Hektar REIT to raise additional funds without incurring interest costs as compared to conventional bank borrowings, which may affect the company’s bottom line.
It would also increase the size and strength of Hektar REIT’s unitholders’ funds, and raise funds in an expeditious manner, compared to pro-rated issuance such as a rights issue, which requires a longer timeframe.
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Source: EdgeProp.my

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