Mapletree Greater China Commercial Trust's Gateway Plaza. (Photo: Mapletree)Mapletree North Asia Commercial Trust's Gateway Plaza. (Photo: Mapletree)

Singapore's largest REIT IPO to date, Mapletree Greater China Commercial Trust (MGCCT)(SGX:RW0U), soared by as much as 10.2 per cent on its debut on the SGX (SGX:S68) before closing the day at S$1.03. This is in sharp contrast to the tepidity in the benchmark Straits Times Index which inched just 0.2 per cent to close the day at 3298.

MGCCT was priced at the higher range of S$0.93 per unit raising some S$1.62 billion. The REIT is projected to yield 5.6 per cent for the financial year ending in March 2014 and 6.1 per cent for the next. This projected distribution numbers compare with an average of 5 per cent on Retail REITs and 4.8 per cent for Office REITs listed in Singapore for the 12 months through the end of January, according to Asia Pacific Real Estate Association (APREA) data.

MGCCT consists of best-in-class office and retail developments in mainland China and in Festival Walk, an up-market residential centre in Hong Kong’s Kowloon Tong.

Singapore's sovereign wealth fund Temasek Holdings will be majority of unit holder in the REIT, holding a 35 per cent stake through its property arm Mapletree Investments after the listing.

By Ridzwan Rahmat

Ridzwan has been analysing REITs and business trusts since 2008, and personally manages a portfolio comprising mainly of SGX-listed REITs. He founded REITsWeek in 2013.