UPDATE: Mapletree Commercial Trust launches equity fund raising to raise at least S$902 million

Signage at Mapletree Commercial Trust’s VivoCity mallSignage at Mapletree Commercial Trust’s VivoCity mall

This article was originally published on Wednesday, 16 October 2019 at 8:00 A.M. SGT; it has since been updated with more details.

Mapletree Commercial Trust plans to offer 406.48 million new units via a private placement and preferential offering to raise at least S$902.3 million, the trust said in a filing to SGX Wednesday.

The funds will be used to acquire Mapletree Business City (Phase 2) from Mapletree Investments’ subsidiary Heliconia Realty for S$1.55 billion, the trust said. The remainder of the acquisition cost will be funded via loan facilities, it added.

The private placement to eligible institutional, accredited and other investors will include 200.89 million new units at S$2.24 to S$2.28 each to raise at least S$450.0 million, the trust said.

The price range for the private placement is a 2.9 percent to 4.6 percent discount to the volume weighted average price of S$2.3484 for the units on Tuesday, the filing said. Pricing will be determined after a book building process, the trust said.

The new units under the private placement are expected to be issued on 25 October, the filing said.

Preferential offering

The preferential offering of 205.59 million new units will be on the basis of 71 new units for every 1,000 existing units held as of 24 October, with a price range of S$2.20 to S$2.24, Mapletree Commercial Trust said.

The price range for the preferential offering is a 4.6 percent to 6.3 percent discount to the volume weighted average price on Tuesday, the trust said.

The preferential offering is expected to open on 30 October and close on 7 November, with the units to be listed on 15 November, the trust said.

Mapletree Commercial Trust Management, the trust’s manager, will take up its provision under the preferential offering and apply for excess new units to maintain its around 34.3 percent stake in the REIT, the filing said.

The trust said it plans to pay an advanced distribution for the period beginning 1 October through the day before the new units are issued in the private placement, with the payment estimated at 2.90 Singapore cents to 2.95 Singapore cents, including the fiscal second quarter distribution.

Citigroup Global Markets Singapore, DBS Bank and UBS AG’s Singapore branch have been appointed as the joint global coordinators and bookrunners, the trust said.

The trust requested a trading halt on its units.


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