Summary of offering
- IPO to raise up to S$1.68 billion to purchase 2 China-based commercial property assets from Mapletree Investments
- The biggest IPO of 2013 and the biggest trust IPO since Hutchinson Port Holdings Trust that raised US$5.5 billion in 2011
- Assets are Greater China-based
- Strong brand name in Singapore with experience in office, logistics, industrial, residential and retail properties
- 45 assets in Singapore
- 20 assets in China
- 9 assets in Hong Kong
- 32 assets in Japan, India, South Korea, Malaysia and Vietnam
- 23 commercial-linked properties
- Figures and numerics
- raising up to S$1.68 billion
- indicative price range of S$0.88-S$0.93
- Use of proceeds
- No exact break-down so far but cash raised will be used to buy the 2 properties from Mapletree Investments.
- Dividend policy
- 5.6-6% for the first year
- 6.1-6.5% for the second year
- 100% of distributable income until March 2015. At least 90% of disctributable income thereafter.
- Cornerstone shareholders
- Temasek Holdings - 851.7-931.6 million shares
- 953.5 million shares to be shared among
- Morgan Stanley
- Norges Bank Investment Management
- AIA Group
- CBRE Group
- Henderson Global Investors
- 776.6 million shares for institutional and retail investors
- Timeline for offering
- 18 Feb - Offer to institutional buyers
- 28 Feb - Offer to public
- 7 Mar - list on SGX
Mapletree is pretty much a big brand name in Singapore akin to Ascendas, both of which are government-linked. It is noteworthy to realise that Mapletree Investments manages a portfolio valued at S$19.9 billion. They have ample management experience in office, logistics, industrial, residential and retail.
China + Commercial Experience
The current IPO is a divestment of 2 China-based commercial assets into a REIT. China is not a new destination for Mapletree as they already easily manage 20 assets in China such as the Mapletree AIP in Guangzhou under Mapletree Logistics Trust. Out of these assets, 6 are commercial-related properties - Beijing Gateway Plaza, Hong Kong Festival Walk, Shanghai Silver Court, Nanhai South Station Enterprise City, Minhang Development Project and Nanhai Business City. The rest are mostly logistics and industrial with some residential properties. Having said that, Mapletree also has considerable commercial property experience outside of China with 7 other assets spread over Japan, Vietnam, Malaysia.
Quality of assets
Both are Grade-A offices in the heart of China and Hong Kong with size more than 100,000 sqm. They also consist of some retail space located at the base of the assets. Festival Walk was purchased by Mapletree Investments in 2011 for $2.4 billion.
Current REIT market conditions
REITs are clearly the outright winning category of 2012 as investors flocked to yield havens, resulting in a yield compression that we see today. Even so, REITs have still enjoyed considerable upside to the start of 2013. Mapletree brand name REITs have also done well in the current market conditions, surging even further in the last 2 days upon the announcement of listing of this REIT.
- Mapletree Commercial (listed 2011) - $1.445 15 Feb closing price compared to IPO offer of $0.88
- Mapletree Industrial (listed 2010) - $1.390 15 Feb closing price compared to IPO offer of $0.93
- Mapletree Logistics (listed 2005) - $1.240 15 Feb closing price compared to IPO offer of $0.68
And, for a tabulation of all SG-listed IPOs' performance since 2012, do visit "SG IPO Statistics" on this HealthyTrading blog. It presents an easy snapshot of all the IPOs at a glance for your analysis and comparisons.
For those of you gunning for this Mapletree Greater China Commercial Trust IPOs, check out my blog page on "Guide to IPO Investing" to help you navigate around especially if you are a new investor or new to the IPO bidding system of SGX. Do not waste time; time is ticking away to those offer deadlines!