KUALA LUMPUR (Dec 1): YTL Hospitality Real Estate Investment Trust (YTL REIT) has fixed the issue price for 380 million placement units at RM1.06 apiece as part of its placement exercise to raise proceeds of up to RM800 million.

In its filing with the exchange today, the trust said 190 million of the units will be placed to YTL Corp Bhd, while the balance will be placed to parties identified by its placement agents AmInvestment Bank, Credit Suisse (Singapore) Ltd and Maybank Investment Bank Bhd.

It aims to raise total gross proceeds of RM402.8 million through the exercise.

"The issue price represents a discount of approximately 9.25% to the five-day volume weighted average market price of the units in YTL REIT up to and including Nov 30, 2016, being the last trading day immediately preceding the price fixing date, of RM1.168," said the REIT.

To recap, the exercise was proposed back in June 2013 for the REIT, then known as Starhill REIT, to repay its borrowings and reduce its gearing level.

Following the announcement of the exercise in 2013, the REIT had requested several extensions of time to complete the corporate exercise, which also included an increase in the existing fund size of YTL REIT to a maximum of 2.125 billion units to cater for the placement exercise.

YTL REIT's gross gearing level stood at 44.14% as at June 30, 2016.

At 4.48pm, YTL REIT units fell 2 sen or 1.74% to RM1.13, giving it a market capitalisation of RM1.51 billion. — theedgemarkets.com

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