Tuesday, September 28, 2010

Industrial Reits/GLP

Industrial Reits/GLP: Spore industrial Reits such as Cache Logistics, Mapletree Logistics, Ascendas Reit, Cambridge Industrial may face downside pressure as the mega IPO of GIC’s industrial logistics arm, Global Logistic Properties (GLP) could drain liquidity from these stocks or prompt a re-weighting of some portfolios. GLP is offering 1.17bn shares at $1.78-1.96 each, with another 589m shares to be sold to cornerstone investors, raising net proceeds of $3.1-3.4bn.

IPO ends Oct 14, with trading expected Oct 18. Temasek-linked Mapletree Industrial Trust also plans to launch its IPO on Sep 30 (listing Oct 21) to raise $800m, which could further depress existing industrial plays. With 2 similar IPOs lined up back to back, industrial Reits would be competing for attention as investors may switch their funds to these 2 much bigger regional industrial property plays.

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