Mapletree Commercial Trust (MCT) is selling new units to raise a minimum of $1.02 billion to partially fund the acquisition of the office and business park components of Mapletree Business City (Phase 1).
It intends to do a private placement of 364.9 million units at between $1.41 and $1.45 apiece to raise no less than $514.5 million.
It will also undertake a preferential offer of 17-for-100 units at between $1.39 and $1.43 apiece to raise a minimum of $504.3 million
Meanwhile, the trust yesterday reported higher rental income from portfolio properties, lifting its first-quarter turnover and helping to boost distribution per unit (DPU) by 1 per cent to 2.03 cents.
Net property income for the three months to June 30 rose 3.7 per cent to $56.3 million as gross revenue climbed 5.2 per cent to $73.4 million.
Ms Sharon Lim, chief executive of the trust manager, said: "In spite of persisting weaknesses in the retail and office markets as well as heightened economic and financial volatilities, our continued focus on active asset management has yielded good results."
AT A GLANCE
$73.38 million (+5.2%)
NET PROPERTY INCOME:
$56.28 million (+3.7%)
DISTRIBUTION PER UNIT:
2.03 cents (+1%)
MCT attributed the growth in turnover to positive contributions from VivoCity mall, office tower Mapletree Anson and integrated development PSA Building.
Its portfolio comprises those three properties and the Bank of America Merrill Lynch HarbourFront office building.
The trust manager said VivoCity continued to deliver "outstanding performance". First-quarter revenue for VivoCity was $2.1 million higher than a year ago, largely due to higher rental income from positive rental reversion and the effects of step-up rents in existing leases.
Property operating expenses for the first quarter rose 10.5 per cent to $17.09 million, mainly owing to higher staff costs, operations and property maintenance expenses, advertising and promotion expenses as well as one-off adjustments made in the year-ago period.
MCT's portfolio occupancy was 97.8 per cent as at June 30, up from 96.6 per cent at the end of March.
Net asset value per unit was $1.29 at the end of June, compared with $1.30 as at March 31.