Mapletree Logistics prices private placement at low end of range

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Mapletree Logistics Trust has priced its private placement at S$1.88 a unit after a book-building process, at the low end of the indicative range of S$1.86 to S$1.911, but still oversubscribed, the trust said in a filing to SGX Wednesday.

The private placement will raise around S$400 million, while an accompanying preferential offering will raise around S$292.8 million, for a total of S$692.8 million, the filing said.

The proceeds will be used to finance acquisitions after Mapletree Logistics Trust entered deals, announced earlier this week, to acquire a portfolio of 16 logistics properties, including 13 in China and three in Vietnam for 4.11 billion yuan (S$870 million) and US$95.9 million (S$129.9 million), respectively.

The trust said also plans to acquire an effective 97 percent interest in a logistics facility in Japan from an unrelated third party for around 35 billion yen, or around S$416.3 million.

The pricing of the private placement marked a discount of around 3.5 percent to the volume weighted average price (VWAP) of S$1.9485 for trades on Monday, the filing said.

The placement, which will have 212.77 million new units, received good participation from new and existing institutional, accredited and other investors, the trust said.

Based on the book-building, the preferential offering will be priced at S$1.84 a unit, marking a 5.6 percent VWAP to trades on Monday, and will have 159.11 million new units which will be issued on the basis of 37 new units for every 1,000 existing units.

Unitholders as of 1 December will be eligible for the preferential offering.

Mapletree Investments, which holds an around 31.59 percent aggregate interest in Mapletree Logistics Trust, has provided an irrevocable undertaking to take up its allotment of new units in the preferential offering, the filing said.

Existing unitholders will receive an advanced distribution before the new units are issued, for the period of 1 October to the date immediately prior to the issuance, with the estimated amount at 1.45 Singapore cents to 1.47 Singapore cents, the trust said.

DBS Bank, HSBC’s Singapore branch and OCBC were the joint global co-ordinators and bookrunners, the filing said.

DBS Treasury Investments has been allocated 6 million new units under the private placement, the filing said.

Mapletree Investments, which is a substantial unitholder of Mapletree Logistics Trust, is indirectly owned by Temasek Holdings via Temasek’s wholly owned subsidiary Fullerton Management. Temasek also has a total interest of 29.87 percent in DBS Group Holdings as of 9 February.

Units of Mapletree Logistics Trust were trading at S$1.91, down 2.05 percent, at 10:17 a.m. SGT.