Mapletree Seeks About $1.3 Billion From REIT Offering

Mapletree Investments Pte, a real estate unit of Temasek Holdings Pte, is seeking to raise as much as S$1.6 billion ($1.3 billion) from an initial public offering of a real estate investment trust backed by assets in Hong Kong and China.

Mapletree Greater China Commercial Trust plans to offer about 1.7 billion shares in the REIT at 88 Singapore cents to 93 Singapore cents, according to a prospectus filed with the Monetary Authority of Singapore today. About 953 million of those will be sold to so-called cornerstone investors including AIA Group Ltd. and Morgan Stanley, according to the document.

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

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

Mapletree Commercial Trust, which raised $754 million in April 2011, and Mapletree Industrial Trust, which completed a $714 million IPO in October 2010, are both up about 50 percent from their offer prices.

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

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