"Subscribed" to Mapletree Commercial Trust (SGX:N2IU) "Preferential Offer"

 

Mapletree Commercial Trust (SGX:N2IU) launched a preferential offering (PO) of up to 1,094 million units at $2.0039 to raise up to $2.2 billion for the merger with MNACT based on 306 shares for every 1000 shares owned.

It is illogical for any retail investor to subscribe for the PO units when the market sells MCT shares lower than the PO issue price of $2.0039. The sponsor, Mapletree Investments will likely absorb the up to $2.2 billion worth of MCT shares at $2.0039 each.

I was entitled to 3,366 PO units from 11,000 shares owned.

I have long been wanting to increase my investments in MCT. I sensed opportunity this time because my investment is driven by passive income for the long-term horizon and paying closer to the NAV of around $1.80 post-merger. This merger, even though makes MCT no longer a pure commercial play in Singapore, should at least allows MCT to continue paying out consistent and steady dividends in the future.

I added 4,000 shares of Mapletree Commercial Trust (SGX:N2IU) at $1.78 today after upping my initial bid at $1.76 which was unfilled for 2 weeks. I am keen to get this deal done before XD for the clean-up distribution next week.

I will now own 15,000 shares of MCT, positioning for the new era after merger with MNACT to become the third largest Reit in Singapore and top 10 largest Reit in Asia.

Even though MCT will no longer be a pure Singapore Greater Southern Waterfront commercial property asset play, its dividend yield should at least remain steady, if not grow after the merger and continue to play an income producing role for investors.

Today's high interest rate environment will not last forever. The FED will hike interest rates this year until there are signs of inflation slowdown and onset of economic recession which will probably induce the FED to stop raising interest rates and perhaps slowly reduce back the interest rates in 2023 or 2024.

I believe that MCT will continue to suffer in terms of price weakness and volatility in the short-term but in the long run of next decade or so, it will definitely thrive and its share price will slowly climb back above $2.

Thanks for reading. Stay safe and remain strong always!

With love & peace,

Qiongster