Atrium REIT to raise RM85m via private placement, special unit issuance to major unitholder

KUALA LUMPUR (July 12): Atrium Real Estate Investment Trust (REIT) has proposed to raise up to RM85.3 million via a private placement and a special issuance of units to major unitholder Chan Kam Tuck, at an indicative issue price of RM1.40 per unit.

In a filing with Bursa Malaysia, the industrial property-focused REIT said the placement involves issuing up to 40.93 million new units (representing up to 20% of the REIT’s total issued units) to third party investors, while the special issuance involves issuing 20 million new units to Chan.

As at July 1, Chan owns 21.28% of units in Atrium REIT. Subsequent to the two corporate exercises, his stake is expected to fall to 20.16%.

Atrium REIT said Chan’s subscription of the special issuance indicates his commitment and confidence by making further investments to support the REIT’s expansion and growth plan.

UOB Kay Hian has been appointed as the principal adviser and placement agent for the proposals, which are expected to be completed by the fourth quarter this year.

Atrium REIT said the money raised will be used to upgrade its property in Shah Alam, with the gross built-up area raised to 376,026 sq ft from 179,553 sq ft.

The REIT said it is finalising the tenancy terms for the first-floor warehouse space of the property.

Atrium REIT closed unchanged at RM1.46 per unit on Friday (July 8), valuing it at RM298.75 million.