MCT – BT

Mapletree postpones commercial Reit IPO

It had expected to raise $1b but jittery market stays its hand

Mapletree Investments has postponed its planned commercial property trust, which was expected to raise about $1 billion, BT understands.

The property group had planned to lodge the prospectus for its Mapletree Commercial Trust (MCT) this week. But the initial public offering, or IPO, has now been delayed due to volatile markets caused by the earthquake and tsunami in Japan 10 days ago, the sources said.

The group said yesterday that it is not at a stage of making any announcement about its planned commercial property trust. ‘Mapletree Investments has previously disclosed plans for a commercial Reit. At this point we are not at a stage where an announcement is required on our part. We will make the necessary announcements in due course,’ said a Mapletree spokesperson.

BT understands that there are doubts about the filing after the Japanese earthquake. The much anticipated Hutchison Port Holdings (HPH) Trust, the world’s largest IPO so far this year, went underwater last Friday on its market debut in Singapore. Market watchers had predicted a lacklustre first-day showing from the US$5.45 billion listing as investors remained jittery about Japan’s nuclear crisis.

MCT is expected to hold the VivoCity mall in its portfolio. Other assets could include Merrill Lynch HarbourFront, PSA Building and Mapletree Business City, an integrated business hub on Alexandra Road. The real estate investment trust (Reit) is aiming to raise about $1 billion, reports have said.

MCT is the fourth Reit by Mapletree Investments, which is fully owned by state investment company Temasek Holdings.

The property group listed Mapletree Logistics Trust in 2005 and jointly launched Lippo-Mapletree Indonesia Retail Trust with Lippo Group in 2007. Its third Reit, Mapletree Industrial Trust, raised close to $1 billion when it was listed in October 2010.

One analyst said that MCT will still hold appeal for investors – once the market settles – as it is a ‘brand-name’ IPO.