Temasek-backed Mapletree launches up to $1.3bln China Focused

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www.ph.news.yahoo.com

16 February 2013

http://ph.news.yahoo.com/temasek-backed-mapletree-launches-1-3-bln-china-040409893–sector.html

* China-focused REIT to yield up to 6 pct in 2013-2014, 6.5 pct in 2014-2015

* Mapletree deal would be biggest REIT IPO in Singapore

* CBRE, AIA, Morgan Stanley, Henderson among cornerstone investors-filing

HONG KONG, Feb 15 (Reuters) – Mapletree Greater China Commercial Trust unveiled on Friday details of an up to $1.3 billion initial public offering, the largest ever for a real estate investment trust in Singapore.

The deal is significant due to its size and its timing, as investors and bankers hope the success of the offering is a harbinger for future IPOs in Asia, following a dismal 2012.

The trust is offering about 1.73 million units in a range of S$0.88-0.93 each, putting the total deal at up to S$1.6 billion ($1.3 billion), according to a prospectus of the IPO filed on Friday.

At that price range, the Temasek-backed REIT has a projected yield of as high as 6 percent for the year ending in March 2014, and 6.5 percent in the 2014-2015 financial year, the prospectus said.

Mapletree’s deal would be the biggest IPO in Asia excluding Japan since People’s Insurance Company (Group) of China’s (PICC) $3.1 billion listing in late November.

It also comes ahead of some $2.5 billion of offerings for business trusts and REITs expected to take place in the coming months in Singapore, including an up to $700 million IPO for GE Commercial Aviation Services’ Aircraft Capital Trust and an up to $600 million deal by Japan-focused retail real estate company Croesus Retail Trust.

REIT listings in the region totaled about $5.42 billion in the 12 months through January, according to Asia Pacific Real Estate Association (APREA) data.

The Hang Seng REIT index in Hong Kong is up nearly 31 percent over the past year, while the FTSE Straits Times REIT index gained 35 percent over the same period, as investors flocked to the high-yielding securities to boost returns amid low global interest rates and volatile stock markets.

Cornerstone investors pledged to buy nearly $720 million worth of units on offer. The 11 investors included Asian insurer AIA Group, Norges Bank, the central bank of Norway, and CBRE Clarion Securities.

Those investors agree to keep the shares for a fixed period of time in exchange for a guaranteed stake in the offering.

The Mapletree REIT owns office and retail developments in China and Festival Walk, an upmarket shopping center in Hong Kong’s Kowloon area. It is controlled by Mapletree Investments Pte Ltd, which is owned by Singapore state investor Temasek .

Citigroup, DBS, Goldman Sachs and HSBC were hired to manage the offering.

Orion Support Incorporated (OSI)

Dear Rick,

Following up from my initial request to you for support in finding a new office location for our company, Orion Support Incorporated.   Well, we moved in to the LTA Building on Perea Street, fifty meters or so from Paseo de Roxas this weekend, only a 4 minute walk to AmCham and under excellent terms.

While I think you assigned both Morgan Mcgilvray and Sherdil Rana to support our original request; as you know, Morgan was very tied up with his wife giving birth during the period we identified this location and negotiated with the landlord, Mr. Mike Arroyo. Yes, the former First Gentleman. But in my short interaction with Morgan, I can see that he is a solid, young professional.

With regards to Sherdil, I want to tell you that with 35+ years of interviewing hundreds and hundreds of individuals, I was impressed with his professionalism, focused support and “can-do” attitude  from the point of identifying our potential office space, and through the negotiation stages prior to the signing of our 6 year contract.  I was impressed with his considered opinions, insightfulness with regards to Philippine business culture and his sage advice related to our strategy in the negotiation process.  Sherdil was able to negotiate a rental rate per square meter about 150 – 200 pesos less than the going rate in this area, and with only a 7% increase after 24 months. Add to that, he secured for us three parking slots at no additional cost, two months security deposit versus the standard three, and two months advance rent to be applied to the front end of our contract versus the back end as is the case in most rental contracts. And, he got the landlord to repaint the entire office with three coats of mildew resistant paint at their expense.   But best of all, we were given a 6 year lease, with only having to give two months notice and forfeit only our two month security deposit to move out anytime with no additional penalty!

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