Mapletree Greater China Commercial Trust IPO

Mapletree Greater China Commercial Trust – IPO listing on 7 March 2013, 2pm

Mapletree Greater China Commercial Trust (MGCCT) offers investors an attractive distribution yield of 5.6% for the first year and 6.1% on the following year at an offering price of S$0.93 per share.

This projection does not account for any asset enhancements to the two premier commercial properties - Festive Walk and Gateway Plaza – which are strategically located in Kowloon Tong, Hong Kong and prime Lufthansa Area in Beijing, China.

The initial portfolio has a total gross floor area of 2.4 million sq ft with 99% of the space occupied and is worth an aggregate of S$4.3bn. The yield of 5.6% does not come with any distribution per unit (DPU) support and sponsor wavier.

In comparison, the projected yield is a tad higher than Fortune REIT’s and CapitaRetail China Trust’s forward yield of 5.3%.

In addition, the management fee structure is based on
distributable income and DPU growth which will greatly align investors’ interest especially when acquiring good quality property assets. In our view, the relative high gearing of 43% could however be the only bugbear for the trust as inorganic growth will be limited over the next few years.

MGCCT would be the largest REIT’s initial public offering in Singapore, raising approximately S$1.68bn in total.

Public offer size is 776, 636,000 units, subject to an over-allotment option. Of which, 265,357,000 units will be offered to public.

Investors can subscribe for the public offer through ATM from 28 Feb 2013, 9am to 5 March 2013, 12 noon. For more details on MGCCT, kindly refer to the prospectus which can be downloaded from MAS Opera under Collective Investment Scheme Offers.