Mapletree Investments, a property firm owned by Singapore state investor Temasek [TEM.UL] has hired bankers to handle a US$1 billion ($1.3 billion) initial public offering of its commercial property trust, which is expected to be launched early next year.

This comes after Mapletree Investments’ unit Mapletree Industrial Trust <MAPI.SI> raised US$720 million in an IPO, which was among a string of successful public offerings of property assets in Asia recently.

 

Mapletree Investments has hired Deutsche Bank <DBKGn.DE>, Citigroup <C.N>, DBS <DBSM.SI> and Goldman Sachs <GS.N> to handle the $1 billion initial public offering of Mapletree Commercial Trust, IFR Asia reported on Friday.

 

A spokesman for Mapletree Investments declined to comment.

 

The commercial REIT will draw its initial portfolio from Mapletree Investments’ $6.4 billion worth of Singapore commercial properties, including assets like Vivocity, the island’s largest mall, and several office buildings west of the city-state’s central business district. 

 

REITs are property funds that pay out most of their rental income as dividend and are aimed at investors who want regular income with an opportunity to benefit if property values rise.

 

“The commercial trust’s assets, especially Vivocity, are pretty good. The leasing commitments and occupancy rates are quite high as well, so it looks like it may be quite a high profile IPO that will be able to attract investors,” said Anni Kum, an analyst at Kim Eng Securities.

 

Mapletree owns or manages over $13 billion worth of real estate assets in Singapore and around Asia.

 

Its listed property trusts include Lippo-Mapletree <LMRT.SI>, whose main assets are Indonesian malls, and Mapletree Logistics Trust <MAPL.SI>, which owns warehouses and other industrial properties across Asia.

 

Besides its plan to list its commercial trust, Mapletree Investments also intends to launch several private property funds including a US$300 million Japan fund focused on IT-related infrastructure, a US$300-500 million Vietnam fund in which Mapletree may inject existing commercial and residential projects, and a US$500 million China-focused fund that will invest in a wide range of sectors.

 

Mapletree is one of Singapore’s largest developers, comparable in size to Keppel Land <KLAN.SI>, Singapore’s third-largest listed developer by market cap, but well behind regional heavyweights CapitaLand <CATL.SI> and City Developments <CTDM.SI>.

 

The banks either declined to comment or were not available to comment.