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Singapore Real Estate, Mapletree Investments to raise up to US$1.36-B in IPO

MS

Mapletree Investments, a Singapore-based real estate development, investment and capital management company, said Friday that they have lodged a preliminary prospectus for Mapletree Greater China Commercial Trust Friday.
According to the company’s announcement on its website, the trust will be managed by Mapletree Greater China Commercial Trust Management, a subsidiary of the Mapletree Investments.

The trust is said to be used to raise between 1.59-B Singapore dollars (US$1.29-B) and 1.68-B Singapore dollars (US$1.36-B) from IPO, aiming at investment in the Greater China region, including malls in Hong Kong and the mainland China.

The real estate investment trust (REIT) is scheduled to list in Singapore Exchange on 7 March, which may become the city-state’s largest initial public offering in 2 yrs.

Last year, Motor sport racing company Formula One delayed its Singapore IPO worth up to US$3-B due to weak markets.

The trust will offer totally 776.6-M/units in this IPO to institutional investors and to the public, with expected price between 88 and 93 cents per unit. Among them, 215-M/units, or 28% of the total units, will be offered to the public.

It will also sell an additional 953.5-M/units to “Cornerstone” investors, including Norges Bank Investment Management, AIA, CBRE, Henderson and Morgan Stanley Investment Management NYSE:MS.

The company said the REIT’s portfolio includes retail and office developments of the Festival Walk in Hong Kong and the Gateway Plaza in Beijing.

Owned by the city-state’s Sovereign Wealth Fund Temasek, Mappletree Investment now have three REIT in total. As of the end of last March, the company owned and managed 19.9-B Singapore dollars (US$16.1-B) worth of office, logistics, industrial, residential, retail and mixed-use properties across Asia.

Its portfolio includes VivoCity in Singapore and some projects in China. The Great China represents one of the company’s biggest market overseas, accounting for 29% of its total portfolio, with approximately 5.7-B Singapore dollars (US$4.6-B).

The company began its business in China in Y 2005, with initial investments mainly in logistics.