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Axis-REIT private placement oversubscribed

The private placement of 68.82 millionnew units of Axis Real Estate Investment Trust (Axis-REIT) has been oversubscribed.

In a statement here today, Axis REIT Managers Bhd said the private placement represented 22.4 per cent of the existing approved fund size of 307.08 million units and would increase the approved fund size to a maximum of 375.90 million units.

"The private placement is to be issued at RM1.97 per unit, representing a discount of approximately 4.37 per cent to the five-day volume weighted average market price up to Aug 26," it said.

It said the gross proceeds of about RM136 million from the exercise would be used to pare down the borrowings of Axis-REIT for the financial year to-date.

"We are delighted with the overwhelming response to the placement exercise,our third in three years," said Axis REIT Managers' chief executive officer,Stewart LaBrooy.

Trading of the new units is expected to commence at 9am on Sept 15. Axis REIT Managers Bhd is the management company of Axis REIT. — Bernama

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