Cambridge Industrial Trust to launch equity fund raising for $50.4m

Cambridge Industrial Trust says it will launch an equity fund raising comprising of the private placement of 56.5 million new units to raise gross proceeds of $30 million; and a preferential offering of up to 38.5 million new units to raise gross proceeds of up to $20.4 million The new units to be offered at a price of $0.531 for the private placement and $0.531 for the preferential offering. Retail offering to be made on the basis of each unitholder having a preferential offer of one preferential unit for every 25 existing units in CIT held by entitled unitholders as at 5.00 p.m. on 29 October 2010. Cambridge Industrial Trust says the net proceeds will be used to part‐finance two announced properties (25 Tai Seng ave and 511, 513 Yishun Industrial Park A) and two potential acquisitions in the western part of Singapore, with aggregate cost of $74.3 million. Post‐completion of the equity fund raising, CIT’s gearing level is estimated to fall from 39.2% to 38.6%, strengthening CIT’s capital structure.