Rubicon Japan Trust has commenced trading on the Australian Stock Exchange yesterday.
The offer of 179 million units at a fixed offer price of $1.00 per unit raised $179 million with the take-up approximately 70% to institutional investors and 30% to retail investors.
“We are delighted with the strong interest in Rubicon Japan Trust, which reflects the highly favourable market in Japan for acquiring real estate, including high returns relative to cost of capital, recovery in land prices for the first time in 14 years, improving rents and very low and declining vacancy rates, particularly in Central Tokyo,” Rubicon’s managing director Gordon Fell said.
Net proceeds of the initial public offering, together with senior term debt, will be used to refinance the bridge debt facility that to date has been used to fund the acquisition of nine of the ten properties of the Trust’s ¥24,930 million ($A283.5 million) initial portfolio.
RJT opened at $1.10 yesterday before closing at $1.12 on the trade of 7.6 million shares.
By Adam Parsons
