Mapletree Industrial Trust private placement meets strong demand, prices top of range

Mapletree Industrial Trust property at 18 Tai Seng in SingaporeMapletree Industrial Trust property at 18 Tai Seng in Singapore

Mapletree Industrial Trust’s private placement was oversubscribed, triggering the upsize option, with the offering pricing at S$2.265, the top of its indicative range, raising around S$400 million, the trust said Wednesday in a filing to SGX.

The offering was around 6.3 times covered, with strong participation from a broad spectrum of investors, including existing and new institutional investors, Mapletree Industrial Trust said.

The placement had been for 158.3 million new units, plus an additional 18.3 million new units under the upsize option, for a total of 176.6 million new units, the filing said. The indicative range had been S$2.211 to S$2.265 each.

The pricing was a discount of around 2.7 percent to the volume weighted average price of S$2.3278 a unit on Monday, the trust said.

The proceeds will be used to partially fund an acquisition: The trust said Monday it formed a 50:50 joint venture with Mapletree Investments to acquire a US$1.4 billion, or around S$1.90 billion, data center portfolio in North America from Digital Realty Trust.

The new units are expected to begin trading on or around 26 September, the trust said.

DBS Bank, HSBC’s Singapore branch and UBS’s Singapore branch will be the joint bookrunners and underwriters, the filing said.

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