Mapletree Industrial Trust, owned by Singapore state investor Temasek, is set to raise S$853 million in an initial public offering. It has launched IPO to retail, institutional and cornerstone investors. The unit would be priced between 88 and 93 cents per unit in the prospectus of Monetary Authority of Singapore.
The Mapletree Industrial Trust is a private trust subsidized by Mapletree and located in Singapore. Mapletree Industrial Fund Management Ptv Ltd offer investors with the opportunity to invest in quality investment instruments in the industrial real estate space. The trust emphasis on improve the quality of the portfolio through active assets management to develop the worth of the assets.
Mapletree Industrial Trust’s IPO comes at a time when Singapore sovereign fund GIC’s logistics unit GLP is launching a $3 billion IPO that potentially becomes the largest in Singapore. Mapletree Industrial Trust’s IPO is the second biggest IPO at Singapore in this year. Issue managers and underwriters for the Mapletree Industrial IPO are DBS, Citigroup, Goldman Sachs and Standard Chartered.
Mapletree Industrial Trust’s portfolio contains 70 properties situated in Singapore. Mapletree Industrial is raising money to pay back debts and buy properties in Singapore. It will purchase six properties from its parent because they want to tap investor demand for high yields at a time of low interest rates. It is expected that the company will also sell an extra 322.58 million units to cornerstone investors including APG Tactical Real Estate Poll, American International Assurance and Prudential.
Temasek oversees S$186 billion and unites Government of Singapore Investment Corp. in taking the public assets in this month. According to the company’s IPO prospectus, the listing date to March 31, 2011. Mapletree Industrial’s allocation capitulates that is a gauge of return on investment, is expected to be 7.6 percent from the Oct. 21.
Mapletree Industrial is selling 594.9 million units with an option to boost the offer by another 91.75 million units. Excluding the placement to the firms linked to Mapletree Investments and including the green shoe option, the IPO could raise as much as S$940 million.
Tham Kuo Wei, who is the Chief Executive Officer of Mapletree Industrial, will have assets of about S$2.2 billion on the listing date, including 70 business parks, factories and industrial buildings situated mainly in Singapore.
After the IPO, Mapletree Investments will own 37.3 percent of Mapletree Industrial, according to the prospectus.
It is anticipated that Industrial rents in Singapore will be raise “slowly” because the increase in supply will be under the 10- year average gain in demand in the next two years.
According to Bloomberg data, Mapletree Industrial’s sale appends to a revival in IPOs in Asia outside Japan, where the value of first-time provides jumped to $37 billion in the first nine months from $20 billion a year earlier.