Mapletree Greater China Commercial Trust (MGCCT) will raise gross proceeds of around S$1.68 billion.
The Mapletree REIT is launching at S$0.93 per share, approximately 265.4 million units are on offer to retail investors. The public offer opens today and will close at noon on March 5. This is by far Singapore’s largest REIT Initial Public Offering (IPO).
The company plans to acquire 2 properties from it’s parent company from the IPO proceeds:
1. Hongkong: Festival Walk is focused mostly on retail commercial space, with tenants including Marks & Spencer, budget fashion company Hennes & Mauritz and an Apple Inc store, but it also has a four-storey office tower.
2. Beijing, China: Gateway Plaza in Beijing targets mostly corporate tenants with two 25-storey office towers.
Rather than rehash all the news widely available, I will link them here.
Click here to go to the official Mapletree REIT IPO news.
Should YOU buy?
Disclaimer: Any decision you decide to make is solely your responsibility.
Pricing: S$ 0.93 per share
Fundamentally: The portfolio in the Mapletree REIT consist of sound properties acquired. Going by the fact that Hongkong just recently released more cooling measures to cool their red hot property market, property assets in the area are seeing a steady climb in property prices, indicating a risk of a property bubble. However with any long term strategies, sound property investment will ride above and downturn and eventually pick up. Remember, the global economy is cyclical. Conclusion : Buy to hold. Personally, I’m buying.
source: yahoo,todayonline, CNA, bloomberg,mapletree