MLT proposes S$650m equity fundraising to partially fund Asia property acquisitions

MAPLETREE Logistics Trust's (MLT) manager on Tuesday proposed an equity fundraising of new units in the trust to raise gross proceeds of up to S$650 million. This is to partially fund MLT's acquisition of Asia logistics properties.

The trust is looking to acquire nine logistics properties in China, Malaysia and Vietnam, and also the remaining 50 per cent interest in 15 properties in China for a total of S$1.09 billion, the manager said on Monday in a separate bourse filing.

The fundraising exercise will take place via a private placement with an upsize option, as well as a non-renounceable preferential offering.

The private placement looks to raise gross proceeds of about S$450 million by issuing between 222 million and 228.1 million new units at an issue price of between S$1.973 and S$2.027 per new unit. It is also subject to an upsize option to issue up to about 25.3 million additional new units to raise around S$50 million.

The issue price range for the private placement represents a discount of between about 2.5 per cent and 5.1 per cent to the volume-weighted average price (VWAP) of S$2.0781 per unit in MLT of all trades in the units on the Singapore Exchange on Monday up to the time the underwriting agreement was signed on Tuesday. It also represents a discount of between about 1.2 per cent and 3.8 per cent on an adjusted VWAP of S$2.0513 per unit.

Through the preferential offering, the manager intends to issue up to around 76.2 million new units to eligible unitholders to raise up to S$150 million in proceeds. This will be at an issue price of between S$1.940 and S$1.990 per new unit.

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The issue price range for the preferential offering represents a discount of between approximately 4.2 per cent and 6.6 per cent to the VWAP of S$2.0781 per unit. It also represents a discount of between around 3 per cent and 5.4 per cent on an adjusted VWAP of S$2.0513 per unit.

Out of the S$650 million in net proceeds, 97.3 per cent or about S$632.5 million will be used to partially fund the acquisitions, while 2.7 per cent or around S$17.5 million will be used to pay estimated professional and other fees and expenses incurred by the fundraising.

The acquisitions are subject to unitholder approval from an extraordinary general meeting. In the event MLT does not proceed with the proposed acquisitions, proceeds from the equity fundraising shall be redeployed to fund future investments and/or pare down debt, the manager said.

Citigroup Global Markets Singapore, DBS, HSBC Singapore branch and OCBC have been appointed the joint global coordinators and bookrunners for the equity fundraising.

MLT units closed up S$0.01 or 0.5 per cent to S$2.08 on Monday, before the announcement. MLT called for a trading halt at 7.35am on Tuesday.