Croesus retail trust

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Joey Ting asked 7 years ago

How come Croesus retail trust is having a preferential offering exercise? This iss after their most recent rights back in Oct 2015.

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pcwong Staff answered 7 years ago

For the purpose of acquiring 2 malls as per their May 2016 news. Preferential offering is given to existing unit holders.
One thing about REITs is that their gearing is limited by regulations. So when they acquire new malls they have to issue bonds to borrow money and/or issue new units.
On the other hand, the additional malls will increase Croesus REIT’s income.
Hope the above answers your question.
 
 

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