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.

Adchemy

Yesterday , we concluded the handover of our unit located on the 27/F of Philamlife Tower. It was a relief that we finally have access and can proceed with our minor refurbishments. Finally an official announcement can be given to our Engineers who really deserve a better facility that they can call their own.

Much of this good news and feelings of self-achievements of getting this unit would not be possible without your help and that of you most gallant employees, Mr. Francis Bautista and Mr. Philipp Llave.

Initially our head office in San Francisco was not in favor to get our own unit and moving out of Regus because of the initial capital outlay it represented. Eventually we were granted approval to start the search on the condition that it would be a tail-end of an existing lease, with no capital outlay needed for fit-out, cabling and furniture on our part. Knowing what the real estate market in the Philippines is like and our prior experience in finding office space, the situation proved very challenging, if not frustrating for us.

But with their professionalism, persistence and unique knowledge of the market, Francis and Philipp were able to find us a unit that fit the specifications of our head and negotiate a deal that was beneficial to us. To sweeten the deal further, the space they provided is just a few floors away from our existing office thus making it an easier transition for us.

Bottom line, what I am trying to say is “THANK YOU” to both most especially to Francis who’s been very instrumental on all my needs in terms of office spaces.

Keep up the good work guys!

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