On Valentine's day, AIMS AMP Capital Industrial Reit publishes an announcement that they will like to buy NorthTech through a Private Placement exercise.

The brief details:

Purpose:
To acquire NorthTech, a 4 storey high-tech facility with underground parking and loading/unloading facilities from Prime Properties.

Funding:
Private Placement - Gross proceeds of S$43.5 million
Debt Finance - $30.9 million

Issued price to institutional investors:
Between S$0.1976 and S$0.2041

Aggregate leverage:
Pre transaction: 32.7%
Post transaction: 33.6%

NPI yield
AIMS AMP existing property portfolio: 7.2%
NorthTech: 7.6%

Therefore, it is yield accretive with gearing about 33.6% after the private placement exercise. The units are sold to a discount of about 8%, given the last done price is 21.5 cents today. Post-exercise, DPU (Distribution Per Unit) will be diluted.

Advanced Distribution to existing shareholders is estimated to be 0.285 cents; books closure ......