Mapletree launches $893mn IPO

712,894,000 Units are offered with 302,197,000 Cornerstone Investor tranche, according to Mapletree.

These are subject to an Over-Allotment Option, priced above the mid-point of the range of $0.88 per Unit.

Total gross proceeds of $893 million will be raised which may be up to $983 million if the Over-Allotment Option is exercised in full.

The offering has an annualised distribution yield of 5.7% for Forecast Year 2011/2012 and 6.2% for Projection Year 2012/2013.

Mapletree Commercial Trust has a portfolio comprising VivoCity, Bank of America Merrill Lynch HarbourFront and PSA Building.

The MCT portfolio properties have a total Net Lettable Area (“NLA”) of approximately 1.8 million square feet and are valued at S$2.8 billion 3. The portfolio occupancy as at 30 November 2010 was 98.0%.

MCTM’s Chief Executive Officer, Ms Amy Ng said “MCT is the first commercial S-REIT to be listed on the SGX-ST since 2007. Investors now have an opportunity to own a piece of VivoCity, Singapore’s largest mall, and other quality Mapletree office buildings.”

Mapletree Investments will distribute 100% of MCT's Taxable Income for the Forecast Year 2011/2012 and Projection Year 2012/2013 and at least 90% of its Taxable Income thereafter.

DPU in Forecast Year 2011/2012 and Projection Year 2012/2013 is 4.97 Singapore cents, and 5.42 Singapore cents respectively. Based on the Offering Price of S$0.88 per Unit, the forecast distribution yield for Forecast Year 2011/2012 is 5.7% and 6.2% for Projection Year 2012/2013, which represents a growth rate of approximately 9.0%.

Mr Hiew Yoon Khong, Group CEO of the Sponsor, added, “MCT will be the third real estate investment trust sponsored by Mapletree marking another milestone in executing and delivering our real estate development, investment and capital management business model. We are pleased to have successfully established these three clearly defined platforms giving investors the opportunity to participate in a range of products carrying the Mapletree name.”