Mapletree Said to Plan REIT Pricing at Top End of Marketed Range

Mapletree Investments Pte plans to sell shares in an initial public offering of a real estate investment trust at the top end of a marketed range, raising about S$1.6 billion ($1.3 billion), said three people with knowledge of the matter.

Mapletree Greater China Commercial Trust (MAGIC), backed by assets in Hong Kong and China, will be priced at 93 Singapore cents a share, the people said, asking not to be named as the process is private. The shares had been offered at 88 cents to 93 cents.

The REIT will include the Festival Walk shopping mall in Hong Kong and Gateway Plaza office complex in Beijing, a sales document for the IPO shows. The sale will be the biggest IPO of a real estate investment trust in Singapore, surpassing three earlier offerings by Mapletree, a real estate unit of Temasek Holdings Pte.

Mapletree Investments officials couldn’t immediately be reached for comment.

Gross proceeds from the offering could be as much as S$1.68 billion if a so-called over-allotment option is exercised, according to the company’s share-sale prospectus. Mapletree Investments will own 32 percent to 35 percent of the REIT after the sale.

About 953 million of the 1.7 billion shares will be sold to so-called cornerstone investors, including AIA Group Ltd. and Morgan Stanley, according to a prospectus filed with the city- state’s central bank on Feb. 15. Also among cornerstone investors are Henderson Global Investors Ltd., Myriad Asset Management Ltd. and Norges Bank Investment Management, which runs Norway’s sovereign wealth fund, the sales document shows.

Citigroup Inc., Goldman Sachs Group Inc., DBS Group Holdings Ltd. and HSBC Holdings Plc are managing the offer.

To contact the reporters on this story: Joyce Koh in Singapore at jkoh38@bloomberg.net; Fox Hu in Hong Kong at fhu7@bloomberg.net

To contact the editor responsible for this story: Philip Lagerkranser at lagerkranser@bloomberg.net