Elsewhere, both Mapletree Logistics Trust (SGX:M44U
) (MLT) and Mapletree Industrial Trust (SGX:ME8U) (MIT) are prepared to divest up to $500 million each, subject to pricing and market conditions. Market watchers think this could be due to the stubbornly high cost of debt, higher interest expense on refinancing, and investor feedback on issues such as capital management, interest coverage ratios and aggregate leverage.
Monetising balance sheets to provide liquidity is likely to command a better cost of capital as property sales at or above valuation underline the valuations in the balance sheet.
Recycling plans, in particular divestments, were articulated by the managers of all three Mapletree REITs. The most surprising was Mapletree Pan Asia Commercial Trust (SGX:N2IU) ’s (MPACT) announcement that the only core properties in its portfolio not for divestment are VivoCity and Mapletree Business City (Phases I and II).
