Mapletree – UOBKH

Dilution From 3-for-4 Rights Issue

Completed 3-for-4 rights issue. Mapletree Logistics Trust (MLT) has completed a 3-for-4 rights issue at a price of S$0.73. It has raised S$606.7m through the issuance of 831.1m new units. Sponsor Mapletree Investments has given an irrevocable undertaking to take up its entire allotment and subscribe for all excess rights units. Mapletree Investment has increased its stake in MLT from 30.2% to 46.9% after acquiring 325m excess rights units. MLT will utilise proceeds from the rights issue to acquire 13 properties in Singapore (6), Malaysia (2), China (3), Japan (1) and South Korea (1) worth S$357.1m. Assuming the acquisition of these targetted properties is already completed, DPU for 1H08 will decrease 25.6% to 2.93 cents. NAV/share will be reduced from S$0.94 to S$0.84 and gearing from 56.3% to 36.8%.

Collaborating with Mapletree Investments on regional expansion. MLT has identified Singapore, Hong Kong and Japan as priority markets. It plans to have 70-75% of its portfolio in developed markets and the remaining 25-30% in emerging markets. Mapletree Investments has invested S$846m in 10 development projects, including logistics parks, build-to-suit and ready-built logistics facilities in China (six properties), Vietnam (three) and Malaysia (one). These assets will be offered to MLT under a right of first refusal valid till 2010. MLT plans to grow its asset base to S$5b by 2010.

Properties in China, Hong Kong, South Korea and Malaysia account for 33% of net property income. The risk-free rates in these markets are much higher compared with that of Singapore. There is also a potential share overhang after the rights issue.