K-Reit shareholders approve $400 million rights issue

The Singapore-based commercial property trust takes an alternative fund-raising route as equity markets remain volatile.
Shareholders of Singapore-listed real estate investment trust K-Reit Asia yesterday approved a rights issue that will see the trust raise S$551.7 million $400 million for the partial refinancing of a loan. The loan was taken up to cover the acquisition last year of a one-third interest in One Raffles Quay, an office and retail complex in the heart of Singapore.

The rights issue is fully guaranteed by its sponsors Keppel Corporation and Keppel Land, which jointly own about 72.7% of the Reit, and is the latest example of how Asian companies are choosing to raise funds away from the capital markets amid the volatile market conditions that have prevailed for the best part of the...
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