Mapletree Investments Pte Ltd, a Singapore-based property developer and manager, has selected advisers for a potential initial public offering (IPO) of a student housing real estate investment trust (Reit) that could raise about US$1 billion, according to people familiar with the matter.

 

The company, which is owned by Temasek Holdings, is working with DBS Group Holdings, HSBC Holdings, OCBC Bank and UBS Group on the planned share sale in Singapore, the people said.

 

An IPO could take place as soon as in the second half of the year, the people said, asking not to be identified as the information is private.

 

Still, the volatility in markets roiled by the Russian invasion of Ukraine and rising interest rates could pose challenges to businesses seeking listings in the coming months.

 

Deliberations are ongoing and details such as the size of the offering and timeline could still change, or Mapletree could decide against proceeding with the plan, the people added.

 

A successful IPO would make it Singapore' s biggest Reit listing since 2013, when another of Mapletree' s trusts raised US$1.4 billion, Bloomberg data show. It could also help boost flagging first-time share sales in a market that saw just 8 new issuances last year totalling US$1.1 billion. The brewery unit of Thai Beverage is set to revive a stalled IPO in the city-state, and is looking to raise about US$2 billion, Bloomberg News reported last month.

 

As a capital manager, Mapletree will continue to formulate appropriate fund products for investors for various asset classes, including student housing, a representative said in response to a query. The company also said it will continue to seek opportunities to grow this business globally, including using its balance sheet, and through private funds or Reits.

 

HSBC, OCBC and UBS declined to comment, while DBS didn' t immediately respond to requests for comment.

 

Mapletree has 4 Singapore-listed Reits and 5 private equity real estate funds, with assets under management totalling S$66.3 billion as of March last year, according to its latest available annual report.

 

Its portfolio spans residential and industrial assets, data centres, retail space and lodging in 13 markets across Asia, Europe and the United States.

 

The company owns 51 student accommodation facilities with over 22,000 beds located across 34 cities in the United Kingdom, the US and Canada worth about S$3.7 billion, its annual report shows.

 

The Reit will be backed by student housing assets in the UK and US, the people said. 

 

On Feb 7, Mapletree Industrial Trust Management non-executive director Chua Tiow Chye acquired 200,000 units of Mapletree Industrial Trust Mapletree Ind Tr: ME8U -1.17% (MIT) at an average price of S$2.49 per unit.

 

With a consideration of S$498,500, this increased his deemed interest from 0.04 per cent to 0.05 per cent. This followed Chua' s acquisition of 200,000 units of MIT at an average price of S$2.60 per unit on Jan 26.

 

Chua is also the deputy group CEO of Mapletree Investments Pte Ltd, the sponsor of MIT.

 

With the Q3FY21/22 (ended Dec 31) financials released on Jan 25, the CEO of Mapletree Industrial Trust Management, Tham Kuo Wei, noted that the resumption of the distribution reinvestment plan with the Q3FY21/22 distribution will help to finance the redevelopment of the Kolam Ayer 2 Cluster and provide greater financial flexibility to seize investment opportunities.

 

The distribution reinvestment plan enables MIT unitholders to acquire new units without incurring additional transaction related costs.

 

At the same time the issue of units in lieu of cash distributions is expected to strengthen MIT' s balance sheet, help finance the progressive funding needs of development projects and accord MIT greater financial flexibility to pursue growth opportunities as part of MIT' s proactive capital management efforts.

Mapletree Industrial Trust

 

On Jan 26, Mapletree Industrial Trust Management non-executive director Chua Tiow Chye acquired 200,000 units of Mapletree Industrial Trust at an average price of S$2.60 per unit.

 

With a consideration of S$519,050, this increased his deemed interest from 0.03 per cent to 0.04 per cent.

 

Chua is also the deputy group CEO of Mapletree Investments Pte Ltd, the sponsor of Mapletree Industrial Trust.

 

He focuses on driving the sponsor' s strategic initiatives including expanding and directing its international real estate investments and developments.

 

He also directly oversees the sponsor' s global lodging sector as well as the private capital management function.

 

On Jan 25, Mapletree Industrial Trust announced that its distribution per unit (DPU) for Q3FY21/22 (ended Dec 31) grew 6.4 per cent year on year to 3.49 cents on an enlarged unit base, which arose from the equity fund raising exercise completed in Q1FY21/22.

 

Gross revenue and net property income for Q3FY21/22 increased 31.3 per cent and 24.1 per cent year on year to S$162.4 million and S$122.7 million respectively, mainly driven by contributions from the acquisition of 29 data centres in the United States and 8011 Villa Park Drive, Richmond, Virginia.