Mapletree Industrial Trust

Mapletree Industrial Trust is offering 594.9m units at $0.93 per unit. DBS and Goldman Sachs is the joint global coordinators and together with Citi and SCB act as the underwriters as well. The company is poised to be one of Singapore's largest listed REIT with an initial portfolio of 70 properties valued at $2.1 billion on 31 Aug 2010. The properties are spread all around Singapore.


The "annualised" yield for FY2010/2011 is 7.6% and projected to grow to 8.0% to FY2011/2012. The IPO will close on 18 Oct at 8am. The placement tranche of 488.7m was overwhelming subscribed and cornerstone investors took 322.6m shares! Luckily, they have a big public tranche of 106.1m for the people in the street. The company will have a market cap of $2.09 billion. For the year ended 31 March 2010, the REIT has a revenue of $178m and a net income of S$86.7m.


The cornerstone investors are APG, AIA, Henderson, Columbia, Shaw and Prudential. The NAV is S$0.86 and the IPO represents price-to-book premium of 1.08x.


The peers include Ascendas Reit (6.19%), Cambridge Industrial Trust (8.92% closest comparison?) etc but for convenience, i will group it with the logistics Reits such as Mapletree Logistics (6.86%) as well. From bloomberg, the peers are trading at between 6-8%.


Again, MIT managed to priced itself at the higher end of the IPO price range due to overwhelming demand. I would consider this REIT as a better buy than Global Logistics (since both are launched around the same period). Assuming a yield compression to 6% before investors switch out to other Reits with better yield, the possible price will be around  $1.18 to $1.24 and that represents a more than 20% upside. Hopefully it will not benchmark itself to Cambridge valuation. Happy investing...


15 Oct - they ran out of prospectus...