PETALING JAYA: Hektar Real Estate Investment Trust (REIT) proposed to undertake a private placement exercise of up to 23.1 million new units, representing up to 5% of its total issued units to raise an estimated RM14.78 million at an indicative price of 64 sen per unit.
According to the group’s Bursa disclosure, RM14.18 million from the estimated proceeds will be put towards working capital with RM10.73 million allocated for its property operating expenses, RM1.78 million will be used towards trust expenses and RM1.68 million will be put towards the refurbishment and enhancement of investment properties.
Meanwhile, RM600,000 will be used to defray the cost of the private placement exercise.
Hektar REIT explained that the private placement will allow it to raise the necessary funds for working capital and capital work in progress to help facilitate its existing day-to-day operations.
Furthermore, the exercise will allow it to raise funds expeditiously without incurring interest cost as compared to bank borrowings.
At the moment, the group has yet to identify the independent third party investor for the private placement.
The proposed private placement is expected to be completed by the second half of the year.
