ALLCO Commercial Real Estate Investment Trust (Reit), which owns commercial buildings in Singapore, Australia and Japan, has cancelled a plan to raise up to $150 million, citing market conditions.
The trust said it was not proceeding with its plan to raise capital by offering up to 175.2 million new units to existing unit holders.
‘There is no pressing need for Allco Reit to be raising capital at this time,’ said Mr Nicholas McGrath, the chief executive of Allco Reit’s manager.
The Reit had meant to use capital raised from the offering to pay off some of the debt taken on when it bought properties in Singapore and Japan.
‘However, given current market conditions, the manager has concluded that it is not prudent to raise equity at this time,’ the Reit said in a statement.
Earlier this month, Saizen Reit - which owns properties in Japan - saw the price of its units plunge 13 per cent on its debut.
As well, APL Japan Trust - which has a portfolio of residential buildings in 12 Japanese cities - postponed its initial public offering.
It said that it was concerned about post-listing weakness amid poor market sentiment.
Source : Straits Times - 29 Nov 2007