Issue statistics
Issue Price : $0.63-0.68
Share capital: 546.3m shares, of which
- 210.4m (38.5%) held by sponsor
- 25m (4.6%) held by investing vendors
- 310.877m (56.9%) placement and public offer (minimum 30m) tranche
*There is an overallotment option for 46.5m units. If exercised, the sponsor, investing vendor and public and institutional tranche would be 30%, 4.6% 65.4% respectively
Net Asset Value/unit: $0.52-0.56
About Mapletree Logistics Trust
Mapletree Logistics Trust (MLT) will comprise 15 properties totalling 8.53msf of logistics warehousing space islandwide valued at $422m. Portfolio occupancy average 95.2% and average lease term to expiry is 9.1 years. 12 of the 15 properties are single tenanted. As at May 2005, 11 of the 32 tenants have long-term leases.
Growth strategies
The manager has identified 3 strategies to drive long-term growth and provide stable returns:
- Acquisition growth strategy. This involves sourcing and acquiring assets in Singapore
and elsewhere in the Asia Pacific region that will enhance the diversification of the portfolio by geography, asset and tenant profile and optimise risk-adjusted returns to unitholders. - Active asset management strategy. Derive organic growth through actively managing
properties by providing value-added property related services in order to maintain high
tenant retention levels, reduce vacancy levels, minimise expenses and enhancing assets.
At least 2 properties – TIC Tech Centre and 60 Alps Avenue have not fully utilised their
plot ratios and have potential for further growth through additional NLA. - Capital and risk management strategy. Optimise MLT’s capital structure and cost of
capital within borrowing limits and use a combination of debt and equity to fund future
acquisitions and asset enhancements.
Distribution
Mapletree Logistic Trust will distribute 100% of its taxable income from listing date to Dec 2006 and at least 90% of taxable income thereafter. Distributions will be made quarterly, with the first distribution for the period of listing date to Dec 2005.
Comments - Only 30Mil shares for public, will be difficult to get. Must call my broker to see if any chance of getting placement shares when IPO is launched :) Still no yield data and prospectus not found in OPERA
2 comments:
The price for the REIT is one of the lower compared to the REIT counter that is currently listed in SGX. I wonder what will the yield be like. I think the yield should be around 6% in order to encourage people to apply for the IPO as the current yield offered by existing REIT counter is around 4% to 5.5% based on their present share price. If the yield is too low, i don't think I would apply for it.
SINGAPORE (Dow Jones)--Mapletree Logistics Trust will provide investors with an annualized distribution yield of 6.0%-6.3% this year and 6.2%-6.5% next year, according to a term sheet seen Friday by Dow Jones Newswires.
This yield would make Mapletree a more attractive investment proposition than rival Ascendas Real Estate Investment Trust (A17U.SG), which is trading at a forecast yield of 4.9% for its financial year ending March 2006.
According to the term sheet, Mapletree has already held roadshows in Singapore and Hong Kong, and is currently talking to potential investors in Europe.
Mapletree, a real estate investment trust focused on logistics properties, lodged its preliminary prospectus last month for an initial public offering to raise up to S$211.4 million.
The term sheet confirms the REIT will offer 310.9 million units in an indicative price range of S$0.63 to S$0.68.
Mapletree's IPO is sponsored by Mapletree Investments Pte. Ltd., a wholly owned unit of Singapore's state-owned investment company Temasek Holdings Pte. Ltd.
The term sheet said Mapletree has a five-year right of first refusal over any future sales of logistic assets by Mapletree Investments, including a pipeline of six properties in Singapore, two in Malaysia and three in Hong Kong.
A press conference on the offer is expected Monday.
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