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PR Newswire
07-04-2011, 05:56 AM
Business Times - 07 Apr 2011
Mapletree to raise up to $1b from commercial Reit IPO
Offering to be second-biggest here this year after HPH Trust's US$5.4b IPO
By UMA SHANKARI
(SINGAPORE) Mapletree Investments plans to raise up to $1.02 billion by listing three of its retail and office assets in a property trust, it said yesterday.
The deal values Mapletree Commercial Trust (MCT) at up to $1.69 billion. Mapletree Investments, which is fully owned by Temasek Holdings, will hold between 40 per cent and 45.5 per cent of the trust after the offer.
The initial public offering (IPO) will be the second-biggest listing in Singapore this year after the US$5.4 billion offering by Hutchison Port Holdings (HPH) Trust last month.
Mapletree Investments had planned to lodge the prospectus for MCT in March, but had to delay the IPO process due to volatile markets caused by the earthquake and tsunami in Japan.
In a preliminary prospectus filed with the Monetary Authority of Singapore yesterday, MCT said it will sell up to 814.4 million units (including an over-allotment option) at 84 cents to 91 cents per unit to institutional investors and the public.
In addition, cornerstone investors - including insurance company AIA Group - have committed to take up another 302.2 million units.
Including the sponsor's stake, there will be a total of 1.86 billion units. This places MCT's market capitalisation at between $1.56 billion and $1.69 billion.
Mapletree, for its part, will raise between $852.7 million and $1.02 billion from the IPO depending on the pricing and whether the over-allotment option is taken up.
The trust will initially hold three assets worth $2.82 billion in all - Singapore's largest mall VivoCity, and the Bank of America Merrill Lynch HarbourFront and PSA Building office buildings.
Mapletree Investments has also granted MCT the right of first refusal for the acquisition of properties with about 5.1 million square feet of net lettable area - including Mapletree Business City.
Analysts BT spoke to said the valuations of the three initial properties should be attractive to investors.
For example, the largest asset in MCT's portfolio, VivoCity, is valued at $1.98 billion, or around $1,900 per square foot of net lettable area. This compares favourably with similar malls in the portfolios of other retail real estate investment trusts (Reits) listed in Singapore, the analysts said.
Because of this, demand for MCT's units should still be strong in spite of recent market volatility, said an analyst with a foreign brokerage here.
'I think if the units are priced right, there is no reason why there shouldn't be demand, and right now, it (the pricing) looks pretty reasonable,' he said. 'It looks like the (projected) yields are in line with other blended retail and office Reits listed here.'
MCT has projected a yield of between 5.47 per cent and 5.92 per cent for the year ending March 31, 2012; and a yield of between 5.96 per cent and 6.46 per cent for the year after.
Analysts put the weighted average yield for the entire Reit sector in Singapore at around 6 per cent.
MCT also said in its prospectus that it has firmed up four cornerstone investors who have committed to invest up to $275 million in the IPO.
The cornerstone investors include AIA, which has agreed to invest up to $125 million. The other three investors - Hillsboro Capital, Japan's Itochu Corp and retailer NTUC FairPrice Co-operative - have agreed to invest up to $50 million each.
Citigroup, CIMB, DBS, Deutsche Bank and Goldman Sachs have been appointed as joint bookrunners, issue managers and underwriters for the offer.
Mapletree Investments' third Reit, Mapletree Industrial Trust, raised close to $1 billion when it was listed in October 2010.
As at end-December 2010, the group and its subsidiaries own and manage more than $14.4 billion of office, logistics, industrial, residential and retail properties with an extensive network of offices in Singapore, China, Hong Kong, India, Japan, Malaysia, South Korea and Vietnam.
Mapletree to raise up to $1b from commercial Reit IPO
Offering to be second-biggest here this year after HPH Trust's US$5.4b IPO
By UMA SHANKARI
(SINGAPORE) Mapletree Investments plans to raise up to $1.02 billion by listing three of its retail and office assets in a property trust, it said yesterday.
The deal values Mapletree Commercial Trust (MCT) at up to $1.69 billion. Mapletree Investments, which is fully owned by Temasek Holdings, will hold between 40 per cent and 45.5 per cent of the trust after the offer.
The initial public offering (IPO) will be the second-biggest listing in Singapore this year after the US$5.4 billion offering by Hutchison Port Holdings (HPH) Trust last month.
Mapletree Investments had planned to lodge the prospectus for MCT in March, but had to delay the IPO process due to volatile markets caused by the earthquake and tsunami in Japan.
In a preliminary prospectus filed with the Monetary Authority of Singapore yesterday, MCT said it will sell up to 814.4 million units (including an over-allotment option) at 84 cents to 91 cents per unit to institutional investors and the public.
In addition, cornerstone investors - including insurance company AIA Group - have committed to take up another 302.2 million units.
Including the sponsor's stake, there will be a total of 1.86 billion units. This places MCT's market capitalisation at between $1.56 billion and $1.69 billion.
Mapletree, for its part, will raise between $852.7 million and $1.02 billion from the IPO depending on the pricing and whether the over-allotment option is taken up.
The trust will initially hold three assets worth $2.82 billion in all - Singapore's largest mall VivoCity, and the Bank of America Merrill Lynch HarbourFront and PSA Building office buildings.
Mapletree Investments has also granted MCT the right of first refusal for the acquisition of properties with about 5.1 million square feet of net lettable area - including Mapletree Business City.
Analysts BT spoke to said the valuations of the three initial properties should be attractive to investors.
For example, the largest asset in MCT's portfolio, VivoCity, is valued at $1.98 billion, or around $1,900 per square foot of net lettable area. This compares favourably with similar malls in the portfolios of other retail real estate investment trusts (Reits) listed in Singapore, the analysts said.
Because of this, demand for MCT's units should still be strong in spite of recent market volatility, said an analyst with a foreign brokerage here.
'I think if the units are priced right, there is no reason why there shouldn't be demand, and right now, it (the pricing) looks pretty reasonable,' he said. 'It looks like the (projected) yields are in line with other blended retail and office Reits listed here.'
MCT has projected a yield of between 5.47 per cent and 5.92 per cent for the year ending March 31, 2012; and a yield of between 5.96 per cent and 6.46 per cent for the year after.
Analysts put the weighted average yield for the entire Reit sector in Singapore at around 6 per cent.
MCT also said in its prospectus that it has firmed up four cornerstone investors who have committed to invest up to $275 million in the IPO.
The cornerstone investors include AIA, which has agreed to invest up to $125 million. The other three investors - Hillsboro Capital, Japan's Itochu Corp and retailer NTUC FairPrice Co-operative - have agreed to invest up to $50 million each.
Citigroup, CIMB, DBS, Deutsche Bank and Goldman Sachs have been appointed as joint bookrunners, issue managers and underwriters for the offer.
Mapletree Investments' third Reit, Mapletree Industrial Trust, raised close to $1 billion when it was listed in October 2010.
As at end-December 2010, the group and its subsidiaries own and manage more than $14.4 billion of office, logistics, industrial, residential and retail properties with an extensive network of offices in Singapore, China, Hong Kong, India, Japan, Malaysia, South Korea and Vietnam.
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