K-Reit plans $774 million rights issue to fund acquisition

Raffles Quay, a K-Reit property

Shares in K-Reit Asia, a Singapore-listed real estate investment trust focusing on commercial buildings, gained 1.1% yesterday as the company provided further details of its acquisition of an office tower in Singapore’s central business district at an estimated cost of S$1.57 billion $1.2 billion and the proposed rights issue that will provide part of the funding.

The gains, which followed a 9.7% drop in the share price to a 12-month low on Tuesday, came as Moody’s changed its outlook on K-Reit’s Baa3 credit rating to positive. The rating agency said it views the acquisition as “mildly...