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Mapletree Commercial Trust - Maybank Kim Eng 2022-01-03: Creating An ‘MPACT’

MAPLETREE COMMERCIAL TRUST (SGX:N2IU) | SGinvestors.io MAPLETREE COMMERCIAL TRUST (SGX:N2IU)

Mapletree Commercial Trust - Creating An ‘MPACT’


Merger with MNACT for diversification, growth

  • Mapletree Commercial Trust (SGX:N2IU) and Mapletree North Asia Commercial Trust (MNACT, SGX:RW0U) have proposed to merge via a S$4.2b trust scheme of arrangement. The entity to be renamed Mapletree Pan Asia Commercial Trust (MPACT) will become the 7th largest Pan Asian REIT, and 3rd largest S-REIT, with a S$10.5b market cap and a S$17.1b AUM across Singapore, China, HK, Japan and South Korea.
  • Beyond the strong financial accretion, we see strategic merits from increased AUM diversification, stronger DPU growth, and potentially lower cost of capital.
  • With likely risk of investor following waning due to a diluted Singapore pure-play thesis, execution will remain key, and management of the new REIT will need to prove it can deliver on an expanded growth mandate.
  • We maintain our forecasts and target price for Mapletree Commercial Trust pending deal closure. Maintain BUY.


Strong financial accretion



Strategic positives from the deal

  • We see 1.5x and raise its MSCI Singapore index weighting from 1.6% to 2.4%, leading to increased investor attention and potentially an improved cost of capital.


Singapore pure-play thesis to wane, execution is key






Chua Su Tye Maybank Kim Eng Research | https://www.maybank-ke.com.sg/ 2022-01-03
SGX Stock Analyst Report BUY MAINTAIN BUY 2.350 SAME 2.350



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