Total Placement Tranche and Public Offer approximately 29.5 times subscribed
Overwhelming support from international and local institutional investors for Placement Tranche:
511,279,000 Units approximately 38.1 times subscribed
Resounding response by retail investors for Public Offer: 215,053,000
Units1 approximately 8.9 times subscribed
Reserved Units comprising 50,304,000 Units over-subscribed
MGCCT Units will commence trading on the Main Board of the SGX-ST on Thursday, 7 March 2013 at 2.00 p.m.
Singapore – Mapletree Investments Pte Ltd (“MIPL” or the “Sponsor”) [丰树产业私人有限公司], through its wholly-owned subsidiary Mapletree Greater China Commercial Trust Management Ltd. (“MGCCTM”) [丰树大中华商业信托管理有限公司], the manager of Mapletree Greater China Commercial Trust (“MGCCT”) [丰树大中华商业信托] , the first and only REIT with best-in-class commercial properties in Hong Kong and China, is pleased to announce that it has successfully completed its initial public offering (“IPO”) of 776,636,000 units in MGCCT (“Units”), subject to an Over-Allotment Option2, at an offering price of S$0.93 per Unit (“Offering Price”).
The IPO consisted of a placement tranche of 511,279,000 units (the “Placement Tranche”) and an offering of 265,357,000 Units3 to the public in Singapore (the “Public Offer”). Based on the Offering Price of S$0.93 per Unit, unitholders of MGCCT (“Unitholders”) can expect to receive distribution yields of approximately 5.6% for the Projection Year 2013/2014 and 6.1% for the Projection Year 2014/20154.
The Placement Tranche drew strong demand from institutional investors from Asia, and globally including from Europe. The indications of interest received were valued at S$18.1 billion, representing approximately 38.1 times of the Placement Tranche.
The Public Offer, which closed on 5 March 2013 at 12.00 noon, was also heavily subscribed and attracted 50,859 valid applications representing 1,914,020,000 Units from retail investors for 215,053,000 Units available for the Public Offer (excluding the Reserved Units), resulting in it being 8.9 times subscribed with a total value of approximately S$1.8 billion.
The 50,304,000 Units reserved for subscription by the directors, management, employees and business associates of MIPL and its subsidiaries (the “Reserved Units”) were over-subscribed.
In all, the total demand of approximately $19.9 billion represents approximately 29.5 times the total amount available for subscription (excluding the Reserved Units and assuming the Over-Allotment Option is not exercised).
Commenting on the response to the IPO, MGCCTM’s Chief Executive Officer, Ms Cindy Chow [周佩佩] said, “We are extremely pleased by the robust response from both institutional and retail investors for the offering. This shows their confidence in MGCCT. MGCCT’s existing portfolio is embedded with strong organic growth over the next few years. Our yield plus growth strategy through active asset management and asset enhancement initiatives together with potential acquisition growth in top-tier cities in Greater China, will enable stable and growing distributions to be made by MGCCT. We would like to thank all our investors who have shown their support for us.”
Citigroup Global Markets Singapore Pte. Ltd., DBS Bank Ltd., Goldman Sachs (Singapore) Pte. and The Hongkong and Shanghai Banking Corporation Limited, Singapore Branch are the Joint Global Coordinators, Underwriters and Issue Managers for the IPO. CIMB Securities (Singapore) Pte. Ltd., Oversea-Chinese Banking Corporation Limited and United Overseas Bank Limited are the Co-Managers and Sub-Underwriters for this IPO.
MGCCT had earlier secured 11 reputable international cornerstone investors including CBRE Clarion, Norges Bank Investment Management, Henderson, Morgan Stanley Investment Management, Newton Investment Management and AIA, who subscribed for an aggregate of 953,475,000 Units (the “Cornerstone Units”), which are separate from the IPO.
The Units will be traded in Singapore dollars in board lots of 1,000 on the Main Board of Singapore Exchange Securities Trading Limited (the “SGX-ST”). Trading on a “ready” basis is expected to commence at 2:00 p.m. on 7 March 2013, subject to the SGX-ST being satisfied that all conditions necessary for the commencement of trading in the Units on a ‘ready’ basis have been fulfilled. Further details on allotments and/or allocations will be published in The Straits Times and Lianhe Zaobao, as well as announced through a SGXNET announcement posted on the Internet at the SGX-ST website http://www.sgx.com prior to the listing of the Units on the SGX-ST.
1Excluding Reserved Units, as defined herein.
2Subject to an Over-Allotment Option of 79,851,000 Units
3Including 50,304,000 Units reserved for subscription by the directors, management, employees and business associates of MIPL and its subsidiaries.
4Based on the Offering Price of S$0.93 per Unit and the projected DPU for the periods from 1 April 2013 to 31 March 2014 and 1 April 2014 to 31 March 2015 respectively, together with the accompanying assumptions in the Prospectus. Such yield will vary accordingly for investors who purchase Units in the secondary market at a market price different from the Offering Price.
IMPORTANT NOTICE
This press release is for information only and does not constitute an invitation or offer to acquire, purchase or subscribe for units in Mapletree Greater China Commercial Trust (“MGCCT”, and units in MGCCT, “Units”). This press release may contain forward-looking statements that involve assumptions, risks and uncertainties. Actual future performance, outcomes and results may differ materially from those expressed in forward-looking statements as a result of a number of risks, uncertainties and assumptions. Representative examples of these factors include (without limitation) general industry and economic conditions, interest rate trends, cost of capital and capital availability, competition from other developments or companies, shifts in the expected levels of occupancy rates, property rental income, charge-out collections, changes in operating expenses, including employee wages, property expenses and governmental and public policy changes and the continued availability of financing in the amounts and the terms necessary to support future business. The past performance of Mapletree Greater China Commercial Trust Management Ltd., as manager of MGCCT (the “REIT Manager”) is not indicative of the future performance of the REIT Manager.
Predictions, projections or forecasts of the economy or economic trends of the markets are not necessarily indicative of the future or likely performance of MGCCT. The forecast financial performance of MGCCT is not guaranteed. You are cautioned not to place undue reliance on these forward-looking statements, which are based on the current view of management on future events. A potential investor should read the prospectus in relation to the initial public offering of Units by the REIT Manager (the “Prospectus”), a copy of which may be obtained, subject to availability, from the underwriters appointed for the initial public offering, for details of the forecasts and projections and to consider the assumptions used and make their own assessment of the future performance of MGCCT before deciding whether to subscribe for or purchase the Units. This press release is qualified in its entirety by, and should be read in conjunction with, the full text of the Prospectus. Anyone wishing to subscribe for or purchase the Units will need to make an application in the manner set out in the Prospectus.
The value of the Units and the income derived from them may fall as well as rise. Units are not obligations of, deposits in, or guaranteed by, the REIT Manager, DBS Trustee Limited (as trustee of MGCCT), the Sponsor, the Joint Global Co-ordinators, Underwriters and Issue Managers. An investment in Units is subject to investment risks, including the possible loss of the principal amount invested. Investors have no right to request that the REIT Manager redeem or purchase their Units while the Units are listed. It is intended that holders of Units may only deal in their Units through trading on Singapore Exchange Securities Trading Limited (the “SGX-ST”). Listing of the Units on the SGX-ST does not guarantee a liquid market for the Units.
The projected yields and yield growth are calculated based on the Offering Price of S$0.93 per Unit and the accompanying assumptions in the Prospectus. Such yields and yield growth will vary accordingly for investors who purchase Units in the secondary market at a market price different from the Offering Price.
Neither this press release nor any copy or portion of it may be sent or taken, transmitted or distributed, directly or indirectly, into the United States, Japan or Canada, or to any U.S. person (as defined in Regulation S under the U.S. Securities Act of 1933, as amended (the “Securities Act”)). The Units have not been, and will not be, registered under the Securities Act, or the securities laws of any state of the U.S. or other jurisdiction and the Units may not be offered or sold within the U.S. or to, or for the account or benefit of, U.S. persons, except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and applicable state or local securities laws. This press release is not an offer for sale of securities in the United States.
This press release may not be forwarded or distributed to any other person and may not be reproduced in any manner whatsoever. Failure to comply with this directive may result in a violation of the Securities Act or the applicable laws of other jurisdictions.
