MAPLETREE GREATER CHINA COMMERCIAL TRUST SGD 7YR
– New Mapletree Greater China Commerical Trust SGD 7yrs announced
– Expected issue rating: Baa1 (Moody’s)
– Price: 3.20%
CCT 2.98 02/2021 (Baa1 by Moody’s) – 100.50, 2.90%
Mapletree Industrial Trust 3.75 2019 (BBB+ by Fitch) – 104.50, 2.68%
Mapletree Industrial Trust 3.65 2022 (BBB+ by Fitch) – 101, 3.50%
[Free Ebook] How should you invest your first $20,000?
We asked 14 Singapore finance bloggers to share what they would do if they could go back in time and invest their first $20,000. They can no longer rewind time, but you can learn from their experience and hopefully start with a better footing.
This was the largest IPO of 1H13 last year, launched to great fanfare, hype and expectations with its unique ticker as MAGIC on Bloomberg. It’s stock price rose, as expected for all government linked IPOs, and tanked and tanked even more before recovering to cost currently.
[Deal stats : 8.9 times oversubscribed on retail tranche and 38.1 times oversubscribed on the institutional tranche]
Ironically, it is the famous Festival Walk, that forms half its portfolio of 2 assets, that had its roof collapse right after the MAGIC ipo in March that people remember.
Market cap SGD 2.53 bio
Dividend yield 6.59%
MTN Programme Size USD 1.5 bio to include perpetual securities
Total Debt/Total Assets Ratio 38.63%
Occupancy at Festival Walk at 100% and Gateway Plaza in Beijing at 97.5%.
Compared to its peers, MAGIC 7Y at Baa1 rating yielding 3.3% is decent. Unless you were lucky enough to load up on Capitamall retail tranche earlier this year at 3.08% for its A2 rating which is trading at 101.25/101.8 (2.87/2.77%) now.
I do not think retail investors will take much interest in this paper though, which is a pity but the dividends do look much better for the time being even though I am no big fan of commercial and retail real estate.
For institutional investors, this is an improvement over Suntec 3.35% 02/2020 launched earlier this year and is yielding 2.96/2.87% currently for its Baa2 rating which is definitely on account of the China exposure.
My verdict : Good timing for the issuer and there will be more to come.
This article was published on www.tradehaven.net, and is republished with permission.