Mapletree Logistics Trust launches equity fund to raise $640m

Mapletree Logistics Hub in Toh Guan Road East. Mapletree Logistics Trust is raising up to $640 million through a private placement and preferential offering.
Mapletree Logistics Hub in Toh Guan Road East. Mapletree Logistics Trust is raising up to $640 million through a private placement and preferential offering.PHOTO: MAPLETREE LOGISTICS TRUST MANAGEMENT

Trust manager prices new units under private placement at $1.175

Strong institutional demand has led Mapletree Logistics Trust (MLT) to price new units under its private placement exercise at $1.175, the top end of an initial range.

It is raising up to $640 million through a private placement and preferential offering.

The trust manager said yesterday: "The private placement was approximately 3.3 times covered and saw strong participation from new and existing institutional, accredited and other investors."

DBS Bank's treasury investments unit was allocated about 7.5 million new units under the private placement, for instance.

The books of orders for the private placement were closed on Wednesday.

The gross proceeds will fund part of Mapletree Logistics Hub Tsing Yi in Hong Kong, among other things.

MLT's portfolio has more than 100 logistics assets in countries including Singapore, Japan and Australia.

The manager said the $1.175 for each new unit was a discount of 2.7 per cent to the volume weighted average price of $1.2077 per unit of all trades on the Singapore Exchange on Wednesday.

The manager said about 300.9 million new units will be issued under the private placement, and about 250.2 million units in the preferential offering.

The preferential offering issue price of $1.145 per new unit represents a discount of 5.2 per cent to the $1.2077 volume-weighted average price. The trust manager said it plans to declare an advanced distribution, said to be between 1.702 cents and 1.72 cents.

This is supposed to be for the period from July 1 to the date before the new units, following the private placement, are issued, which is expected to be Sept 22.

It noted the distribution per existing unit for the period from July 1 to Sept 30 is currently estimated to be between 1.887 cents and 1.907 cents.

"A further announcement on the actual quantum of the advanced distribution will be made by the manager in due course," it said.

The manager also said that holders of the new units following the private placement "will not be entitled to the advanced distribution and will not be eligible to participate in the preferential offering".

Those who hold new units after the preferential offering will also not get the advanced distribution.

A version of this article appeared in the print edition of The Straits Times on September 15, 2017, with the headline 'MLT launches equity fund to raise $640m'. Print Edition | Subscribe