Thursday, September 30, 2010

Mapletree Industrial Trust (MIT) IPO

Mapletree Industrial Trust (MIT) IPO: expected to raise gross proceeds of up to $1.19 billion. Price in offer range of $0.88-$0.93 per unit. MIT will Issue 594.91m units, subject to over-allotment option of another 91.75m units, with annualized yield of between 7.6-8% for FY10/11 & 8-8.5% for FY11/12, comparing favourably to Ascendas Reit’s DPU yield of 6.1-6.3% & Cambridge’s yield of 8.9%.....

IPO is priced at between 1.02x and 1.08x book value, broadly in line with S-Reit sector average of 0.97X PB, and industrial average of 1.06X PB. 6 cornerstone investors have agreed to subscribe for the shares, namely AIA, Prudential Asset Management (Singapore), Henderson Global Investors, Columbia Wanger Asset Management, US investment firm DE Shaw, and Dutch pension fund APG…..

MIT's IPO portfolio will comprise 70 properties located across Singapore with an aggregate net lettable area (NLA) of about 1.1 million sq m and a gross floor area of 1.5 million sq m. These assets include six light industrial buildings from Mapletree Singapore Industrial Trust (MSIT), a private trust that MIT is acquiring for $183.3 million on the listing date…..

IPO seen as recapitalization exercise for MIT, which has $977.8m of debt on balance sheet maturing in Jul 2012. Proceeds & a new debt facility of $837 million will be used to pay down existing debt & pay for the acquisition of MSIT and related costs…..

Analysts notes that the domestic focus of MIT could works in its favour, given strong outlook of Singapore's industrial property market and its attractive yields. Pricing of offer expected to be on Oct 11. The public offer opens on Oct 13 and closes on Oct 18. Trading of the units is expected to commence on Oct 21.

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