November 16, 2007 / 3:38 PM / 11 years ago

Lippo, Mapletree price $358 mln REIT IPO at lower-end

SINGAPORE, Nov 11 (Reuters) - Indonesia’s Lippo Group (0226.HK) and Singapore’s Mapletree Investments have priced a $358-million initial public offer (IPO) for their joint property trust at S$0.80 per unit, the lower end of an indicative range.

The IPO for the Lippo-Mapletree Indonesia Retail Trust will sell 645,469,000 units at S$0.80 cents per unit, according to a prospectus submitted late on Friday.

An earlier prospectus lodged in October gave the indicative price range between S$0.78 to S$0.91 per unit.

The Lippo-Mapletree Indonesia Retail Trust is based on around S$1 billion worth of properties that comprise seven Indonesian shopping malls, and seven retail spaces found in other malls, the prospectus said.

The IPO for the Indonesian trust comes after Saizen Real Estate Investment Trust (REIT), which is based on residential buildings in Japan, tumbled 14 percent in its Singapore market debut on Friday.

Saizen’s rout prompted Japan’s Asia Pacific Land to say on Friday it will delay a $350 million IPO in Singapore.

UBS UBSN.VX, Oversea-Chinese Banking Corporation (OCBC.SI) and BNP Paribas (BNPP.PA) are the lead managers, the issue managers and the underwriters of the deal.

Mapletree, which is owned by Singapore state investor Temasek Holdings [TEM.UL], has a 40 percent stake in the joint venture that will manage the Indonesian trust. The Lippo conglomerate, controlled by Indonesia’s Riady family, owns the remaining 60 percent.

REITs, which are seen by investors as a cross between bonds and equities given their regular dividends and capital appreciation gains, have taken off in Singapore since the first was listed in 2002.

The city-state now has the third-largest REIT market in Asia-Pacific after Australia and Japan. (Reporting by Koh Gui Qing; Editing by Tomasz Janowski)

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