Singapore's Mapletree Logistics flags $513 million fundraising to buy Asia properties

SINGAPORE (Reuters) - Mapletree Logistics Trust said on Tuesday it was launching an equity fundraising of S$700 million ($513 million)through a private placement and preferential issue of units to finance acquisitions of properties in Vietnam, China and Japan.

The proposed deal comes at a time of booming demand for warehouses and logistics infrastructure as the coronavirus pandemic spurs e-commerce.

Mapletree Logistics is backed by Mapletree Investments Pte, a subsidiary of state investor Temasek Holdings.

The company said the capital will help fund the purchase of 17 logistics assets for S$1.47 billion in China, Vietnam and Japan. Thirteen of these properties are located in China.

The purchases are also being funded partly by debt.

Mapletree Logistics launched a S$400 million private placement of 209.3 million to 215.1 million units to investors at an issue price of between S$1.860 and S$1.911 apiece.

It also proposed to raise S$300 million via a preferential offering of up to 163.4 million new units to existing unitholders at between S$1.82 and S$1.87 apiece.

Units of Mapletree Logistics closed at S$1.95 on Monday. Trading in the units were halted on Tuesday.

DBS, HSBC and Oversea-Chinese Banking Corp are the joint global coordinators and bookrunners for the equity fundraising.

($1 = 1.3656 Singapore dollars)

Reporting by Aradhana Aravindan in Singapore; Editing by Muralikumar Anantharaman