SINGAPORE: Mapletree Investments Pte, a real estate firm owned by Singapore state investor Temasek Holdings Pte, has picked banks for an initial public offering (IPO) of parts of the company in the city-state that could raise at least S$1bil (US$780mil), according to sources.
Citigroup Inc, DBS Group Holdings Ltd and Morgan Stanley are working on the planned listing of some of Mapletree’s assets, the sources said.
The company hasn’t yet decided which assets would be included, the sources said, adding that a listing could take place as soon as next year.
“Deliberations are ongoing and details such as the timing and size of the offer may change,” the sources added. “More banks may be also added later.”
A representative for Temasek referred a request for comment to Mapletree, which declined to comment.
Any material information, should it arise, will be communicated through the appropriate channels, the spokesperson for Mapletree added.
Mapletree recorded a rare loss in its 2023 to 2024 fiscal year, dragged by challenges including markdowns on its office assets in the United States, Australia and Europe.
It also has exposure to China, which continues to suffer from a major property downturn. Mapletree oversees private funds and three listed real estate investment trusts in Singapore.
Talks about a merger with CapitaLand Investment Ltd – another Temasek-backed property manager – stalled earlier this year due to disagreements on issues including valuation, leadership, personnel revamps and business performance, sources have said.
An IPO of Mapletree’s size would be a welcome lift for Singapore, which recently lost out on a potential US$1.5bil listing of a real estate investment trust after data centre operator AirTrunk postponed the deal, Bloomberg News has reported.
First-time share sales have raised US$1.24bil in Singapore this year, down 17% from a year ago, data compiled by Bloomberg show.
The Business Times reported on Oct 30 that Mapletree might list next year. — Bloomberg
