As per the media reports, a cash call was announced Friday by the commercial real estate investment trust CapitaCommercial Trust (CCT) to raise nearly $828.3 million.

It has been learnt that at a price of 59 cents a piece, CCT unitholders can subscribe for one new unit in CCT for every existing unit held.

Ms Lynette Leong, chief executive of the trust's manager CCT Management informed that CCT's gearing would be reduced by the rights issue to the low end of their target gearing range of 30 per cent to 45 per cent through property market cycles.

The company would mainly use the net proceeds of the rights issue to decrease borrowings with the rest going to capital expenditure, asset enhancements and working capital.

Full entitlement for $260.4 million would be subscribed by developer CapitaLand, which owns 31.4 per cent of CCT.

It was confirmed by CCT's manager via a separate announcement to the Singapore Exchange on Friday that new independent valuations for Singapore properties owned by CCT have been acquired by the company, including Capital Tower, Robinson Point and HSBC Building. The valuer is Jones Lang LaSalle Property Consultants.