Temasek-backed Mapletree launches $1.3 bln record REIT IPO

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Reuters: Hong Kong/Singapore, Feb 15 2013, 21:32 IST

for office REITs listed in Singapore for the 12 months through the end of January, according to Asia Pacific Real Estate Association (APREA) data. In Hong Kong, retail REITs posted average yield of 4.6 percent, while office REITs had 5.46 percent in the same period.

"The yield is attractive and in line with what is being offered in the REIT space in Singapore," said Kristy Fong, an investment manager at Aberdeen Asset Management in Singapore. "Right now they have a few assets, but the management can pursue asset enhancement and there are potentially more assets that can be injected by the sponsor."

Pricing of the IPO is set for Feb. 27, with trading on the Singapore stock exchange slated for March 7.

The Mapletree REIT will consist of office and retail developments in mainland China and in Festival Walk, an up-market shopping center in Hong Kong's Kowloon area. It is controlled by Mapletree Investments Pte Ltd, which is owned by Temasek.

Festival Walk is focused mostly on retail commercial space, with tenants including Marks & Spencer, budget fashion company Hennes & Mauritz and an Apple Inc store, but it also has a four-storey office tower. Mapletree's Gateway Plaza in Beijing targets mostly corporate tenants, with two 25-storey office towers.

The Mapletree REIT plans to use all the proceeds from the offering to help fund the purchase of Festival Walk and Gateway Plaza from its parent company. In addition to the IPO funds, the REIT is also taking out a HK$12.15 billion ($1.6 billion) loan

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