Sunway City,13 October 2020
Sunway REIT Management Sdn. Bhd., the Manager of Sunway Real Estate Investment Trust (“Sunway REIT”), is pleased to announce that Sunway REIT has successfully placed out 479.7 million new units (“New Units”) pursuant to the Private Placement exercise at the issue price of RM1.48 per unit, raising gross proceeds of RM710.0 million.
The Private Placement was fully subscribed with encouraging demand anchored by support from both domestic institutional investors and new foreign institutional investors. Despite the challenging market condition and announcement of Conditional Movement Control Order (“CMCO”) in the midst of the book building period, the success of the transaction serves as a testament to investors’ confidence in Sunway REIT’s track record and growth trajectory. The proceeds from the Private Placement has been earmarked mainly to fund the acquisition of Sunway Pinnacle and the expansion of Sunway Carnival Shopping Mall.
Pursuant to the issuance of the New Units, the total number of issued units in Sunway REIT will increase to 3,424.8 million units and Sunway REIT’s market capitalisation will expand correspondingly from RM4.5 billion to RM5.2 billion based on market closing price of RM1.52 per unit as at 12 October 2020.
Sunway REIT Management Sdn. Bhd. Chief Executive Officer Dato’ Jeffrey Ng commented, “Despite the tough market conditions, the encouraging support from investors reinforces investors’ confidence towards Sunway REIT’s medium to long-term growth trajectory. With the expected completion of the Private Placement, Sunway REIT’s capital base will be strengthened, giving us flexibility to pursue new yield accretive acquisitions and asset enhancement initiatives, in line with our TRANSCEND 2025 strategic direction. Sunway REIT’s gearing is also expected to reduce to 37.6% from 40.7% on a pro forma basis as at 30 June 2020.”
The Private Placement was jointly managed by Credit Suisse (Singapore) Limited, RHB Investment Bank Berhad and Maybank Investment Bank Berhad.