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CCT to buy prime Frankfurt property for 343m euros, raise at least S$212m via private placement

June 4th 2018

By "The Business Times"

CAPITALAND Commercial Trust (CCT) is buying a majority stake in a prime Frankfurt property for 342.7 million euros (S$548.3 million), which will be partially funded through an equity placement of at least $212 million.

Together with CapitaLand, CCT will acquire the freehold commercial property, known as Gallileo, situated in the central business district (CBD) of Frankfurt, Germany. CCT will hold a 94.9 per cent stake in the property, with CapitaLand holding the remaining 5.1 per cent. The acquisition is expected to be completed in June this year.

Gallileo's agreed property value of 356 million euros represents a 1.4 per cent discount to the open market value of 360.9 million euros as at March 31, CCT said. The open market value was appraised by independent valuer Cushman & Wakefield LLP.

To partially fund the acquisition, CCT will undertake a private placement of 130 million new units in CCT to investors at an issue price between $1.631 and $1.676 per unit. The issue price range represents a discount of approximately 3.2 per cent and 5.8 per cent to the volume weighted average price of $1.7306 per unit for trades in the units done on May 16, being the preceding market day on which the placement agreement was signed.