Cambridge – BT

Cambridge Industrial Trust Management Limited, the manager of Cambridge Industrial Trust (CIT), said on Thursday that it intends to undertake an equity fund raising of about S$50.4 million to help fund the acquisitions of four properties.

It is planning a private placement of 56.50 million new units in CIT at an issue price of S$0.531 each to raise gross proceeds of about S$30.0 million.

It will also offer up to 38.48 million new preferential units in CIT on the basis of one preferential unit for every 25 existing units in CIT held on October 29, 2010. The preferential units will be priced at S$0.531 each to raise gross proceeds of up to about S$20.4 million.

The properties to be acquired comprise 25 Tai Seng Avenue, a 7-storey light industrial cum office building which was completed in 2009; two light industrial buildings at 511 and 513 Yishun Industrial Park A; a 4-storey factory and a built-to-suit project for lease, expected to be completed and operational in 2011.

The total acquisition cost is estimated around S$74.3 million.

CIT's manager intends to finance about S$48.6 million of the total cost with the net proceeds from the equity fund raising.

The balance S$25.7 million of the cost will be financed by a partial draw-)down of S$21 million under an existing acquisition term loan facility and existing cash of S$4.7 million.

The Royal Bank of Scotland N.V., Singapore Branch has been appointed as the sole global co-ordinator of the equity fund raising, and the sole bookrunner and underwriter for the private placement.