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| Mapletree Commercial Trust |
The IPO of the trust, managed by Singapore state investor Temasek's property arm, was delayed for two weeks, after a massive earthquake and tsunami struck Japan and caused widespread panic-selling in equity markets.
But the launch of Mapletree Commercial's IPO comes amid a recovery in global stock markets, indicating investors' risk appetite may be returning after a slump in the aftermath of the earthquake.
Mapletree Commercial plans to sell 1.02 billion units, excluding an over-allotment option, to investors at an indicative price of S$0.84 to S$0.91 each, it said in a prospectus on Wednesday.
This translates to a distribution yield of about 5.5 to 5.9 per cent for the fiscal year ending March 31, 2012, offering investors a chance to reap a steady income stream and to tap into the growth in Singapore's retail industry and a recovery in the office property sector.
The offering includes 302.2 million units, which will be sold to cornerstone investors AIA Group , Hillsboro Capital, Itochu Corporation and NTUC FairPrice.
Mapletree Commercial will have an initial portfolio worth about S$2.8 billion, including Singapore's largest shopping mall VivoCity, and two office properties in the city-state.
Singapore expects to welcome 12 to 13 million visitors this year, up from 11.6 million in 2010, helped by growing travel within Asia, which could benefit Mapletree Commercial's VivoCity shopping mall due to its proximity to the tourist attraction Sentosa.
Mapletree Commercial's sponsor, Mapletree Investments, has also granted the trust a right of first refusal for the acquisition of 10 properties including Mapletree Business City, an office precinct in the south of Singapore.
Citigroup, DBS Bank, Deutsche Bank and Goldman Sachs are the joint global coordinators and, along with CIMB, are also joint bookrunners and issue managers.
Sources: http://business.asiaone.com
