Mapletree Commercial Trust (MCT) IPO

Mapletree Commercial Trust (MCT) announced that it will raise at least $893 million in an initial public offering (IPO). This will be the second biggest listing in Singapore this year.

The Reit will have 713 million units priced at 88 cents each giving a forecast yield of 5.7% (4.97 cents) for next year and 6.2% (5.42 cents) for 2012.

MCT owns PSA building, Vivocity mall and office complexes including the Bank of America Merrill Lynch Harbourfront and PSA Building.

The public offer for the Mapletree Commercial Trust IPO opens on 19th April 2011 and closes at 9am on 25th April 2011.

Trading of MCT on the Singapore Exchange is expected to start two days later on 27th April 2011.

You can find the MCT prospectus below:

Mapletree Commercial Trust Prospectus (9 Mb)

Investors in Reits might want to read this other article that I wrote:

Are Singapore Reits a Good Investment?



Comments

  1. Jasmin says

    May I ask what are the main differences between the above and Mapletree Reit launched at 93 cents some time ago?
    Thanks.

    • Jasmin says

      What is the meaning of 100% payout?
      Also, does this work like a unit trust where we have to pay management or other misc fees embedded somewhere?

  2. Nuts says

    It’s just another REIT. REITs need to distribute at least 90% of net profits in order to qualify for lower corporate taxes.

    And sure got mgmt fees and other costs — just look at all of the other REIT annual reports. Previously before the 2008 GFC, many investors not happy with mgmt fees being paid with extra shares created as this dilutes existing shareholders w/o share offer for them too.

    Conventional wisdom is that commercial and industrial properties still got legs to run for next 2-3 years. Before the next big recession hits again.

    • Jasmin says

      So others milk us first before we get the dividends?
      I start to see a familiar trend people going crazy after IPOs like some years ago.

    • woo says

      Heard from market talk that it would be so much more profitable investing in a REIT administrator than investing in the REIT itself.

      Rights placement issues tend to dilutes existing shareholders.
      What i understand from MCT is that there will be no purchases or additional of assets for next 2 years; ie no diluting rights.

    • Nuts says

      Yes, but most people cannot sit still. They cannot leave their money in money mkt funds earning less than 1% yield or even in corporate bond funds for 2, 3, 4 years. They *feel* that they *must* do something *now* to get *higher return* on their money.

  3. isaac says

    hi, it says the dividend will be payable in FY11, so may i know when exactly we will receive the dividend? thanks!

  4. Lin says

    Hi Lion,
    Do you know how to read the data on http://reitdata.com/ ?
    I don’t understand the DPU cts, Mkt, Yield, NAV

    So in your opinion, we shouldn’t invest in REITS?

    so what should we do with our money? cannot leave in bank and let inflation “eat” up right?

    Any suggestion?

    Thanks!

  5. derek says

    Dear Lioninvestor,

    Thanks for your website. I want to invest in some unit trusts for short term interest, but I dont know how to find them in singapore.

    Pls help

  6. Blur says

    Dear Lioninvestor,

    I read the SGX announcement and Citigroup is the dealer for the stabilizing action for the IPO.

    Can you advise what does stabilizing action means?

    Thank you!

  7. rookie says

    Hi Lioninvestor,

    MCT is trading below IPO price but seem to be holding from drifting to far from IPO price. Any view why it trading below water and what duration before it will trade over IPO price? Thanks

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