Mapletree Said to Prepare $1.2 Billion IPO of Property Assets

Mapletree Investments Pte plans to raise more than S$1.5 billion ($1.2 billion) through the initial public offering of a real estate investment trust backed by assets in Hong Kong and China, said two people with knowledge of the matter.

Mapletree Greater China Commercial Trust may start trading in Singapore in March and will include the Festival Walk shopping mall in Hong Kong and Gateway Plaza office complex in Beijing, said the people, who asked not to be be identified as the information is private.

The deal would mark the biggest IPO of a real estate investment trust in Singapore, surpassing two earlier offerings by Mapletree. Mapletree Commercial Trust, which raised $754 million in April 2011, and Mapletree Industrial Trust, which completed a $714 million IPO in September 2010, are both up more than 40 percent from their offer prices, data compiled by Bloomberg show.

“As a capital manager, we are always looking at ways to syndicate new private equity funds or REITs,” Mapletree said in an e-mailed response to questions today. “We will update the market as and when appropriate.”

Mapletree, the real estate unit of Temasek Holdings Pte, Singapore’s investment company, is likely to own more than 30 percent of the REIT after the listing, one of the people said. The International Financing Review reported on the IPO yesterday.

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

Festival Walk

ARA Asset Management last year canceled the IPO of Dynasty REIT, which would have been backed by commercial real estate in China and was planning to raise as much as 5.4 billion yuan ($867 million).

Swire Pacific Ltd., a Hong Kong office and shopping mall landlord, agreed to sell the Festival Walk shopping center to Mapletree for HK$18.8 billion ($2.4 billion) in July 2011. Beijing Gateway Plaza is an office complex consisting of two 25-floor office towers, connected by a retail podium and basement car parks.

Mapletree owned and managed S$19.9 billion of office, logistics, industrial, retail and mixed-use properties across Asia at the end of March 2012, according to its website.

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