MapletreeLog's Launch of Equity Fund Raising to raise approximately S$300 million in Capital to Fuel Growth - 21 SEP 2010

MapletreeLog's Launch of Equity Fund Raising to raise approximately S$300 million in Capital to Fuel Growth. See press release.

Key Points

• Equity Fund Raising to comprise 
• Private Placement of up to 207,317,073 New Units to raise gross proceeds of approximately S$170 million 
• Preferential Offering of 164,345,224 New Units to raise gross proceeds in excess of S$130 million
• New Units to be offered at a price of between S$0.82 to S$0.84 for the Private Placement and at a price of between S$0.81 to S$0.83 for the Preferential Offering.
• Preferential Offering to be made on the basis of two New Units for every 25 existing units held by entitled unitholders of Mapletree Logistics Trust (“MapletreeLog”) as at 29 September 2010 (“Book Closure Date”).
• Mapletree Investments Pte Ltd, the largest unitholder and sponsor of MapletreeLog (the “Sponsor”) through its designated wholly-owned subsidiaries, has given irrevocable undertakings to take up their provisional allotment of approximately 44.3% of the New Units under the Preferential Offering and subscribe for such number of New Units, to the extent that they remain unsubscribed.
• Net proceeds to be used to finance substantially five announced acquisitions in Vietnam, Singapore, Japan and South Korea, as well as three proposed acquisitions in Singapore and one proposed acquisition in Japan with total aggregate purchase price and estimated acquisition-related costs amounting to approximately S$440 million.
• Post completion of the Equity Fund Raising, MapletreeLog’s gearing level is estimated to fall from about 46% (assuming the above acquisitions are funded by debt) to about 38%; this will allow MapletreeLog to continue its trajectory of growth.