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India's First REIT Raises $81.3 million in Over-Subscribed Issue

International-Stock-Index-wpcki.jpg Investors in Asia, Europe and the U.S., looking for a vehicle to fight inflation, have over-subscribed India's first real estate investment trust.  Singapore Stock Exchange-listed Ascendas India Trust (a-iTrust) closed when it reached $81.3 million (Singapore $100 million).

The trust was initially looking to raise $70 million Singapore dollars. (One Singapore dollar equals 81 cents US)

The private placement is offering new units in a-Trust. at 72 Singapore cents per unit. The joint placement agents were Citigroup Global Markets Singapore Pte. Ltd and DBS Bank Ltd.

According to the company's statement, the placement saw strong participation from Asian, U.S. and European investors and was about 2.6 times subscribed based on the upsized issue of S$100 million or 139 million New Units. The new units represent 18 per cent of existing units.

The company said the issue price of S$0.72 per new unit represents a discount of 9.2 per cent to the adjusted volume weighted average price (vwap) of S$0.7933 per unit for trades in the units on the SGX-ST for the full Market Day on September 27 and a 22 per cent premium to the net asset value per unit based on a-iTrust's unaudited financial results for the first quarter ending June 30.

An announcement will also be made when the date the new units are expected to be listed on the SGX-ST.

Ascendas India Trust was publicly listed in 2007. This  is the fund's first attempt in issuing a follow-on equity fund raising for its private placement. The money raised through this offer will be used to finance a-iTrust's initiatives, the company said.

a-iTrust is developing Aviator, a 6 lakh square feet multi-tenanted building in International Tech Park Bangalore (ITPB) due for completion in December 2013.

It is also planning to buy an additional building within aVance in early 2013. Ascendas India Trust had acquired two buildings in aVance Business Hub (aVance) in February 2012, and has the option to buy three more buildings in aVance which is located in Hyderabad.

The company states it is in advanced negotiations with several vendors relating to potential acquisitions of assets amounting to an aggregate sum of over S$100 million. The net property yields for these investments are expected to be higher than a-iTrust's existing asset yield and is expected to enhance a-iTrust's distribution per unit growth moving forward.

The fund had recently acquired Shriram's Gateway SEZ for nearly Rs 500 crore.

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