(Nov 4): Mapletree Investments Pte Ltd, a real estate firm owned by Singapore state investor Temasek Holdings Pte Ltd, has picked banks for an initial public offering of parts of the company in the city state that could raise at least S$1 billion (RM3.18 billion), according to people familiar with the matter.

Citigroup Inc, DBS Group Holdings Ltd and Morgan Stanley are working on the planned listing of some of Mapletree’s assets, the people said, asking not to be identified because the information is confidential. The company has not yet decided which assets would be included, the people said, adding that a listing could take place as soon as next year.

Deliberations are ongoing and details such as the timing and size of the offer may change, they said. More banks may also be added later, the people added.

A representative for Temasek referred a request for comment to Mapletree, which declined to comment. Any material information, should it arise, will be communicated through the appropriate channels, the spokesperson for Mapletree added. Citi, DBS and Morgan Stanley declined to comment.

Mapletree recorded a rare loss in its 2023-2024 fiscal year, dragged by challenges including markdowns on its office assets in the US, Australia and Europe. It also has exposure to China, which continues to suffer from a major property downturn.

Mapletree oversees private funds and three listed real estate investment trusts in Singapore. Talks about a merger with CapitaLand Investment Ltd — another Temasek-backed property manager — stalled earlier this year due to disagreements on issues including valuation, leadership, personnel revamps and business performance, people familiar with the situation have said.

An IPO of Mapletree’s size would be a welcome lift for Singapore, which recently lost out on a potential US$1.5 billion (RM6.11 billion) listing of a real estate investment trust after data centre operator AirTrunk postponed the deal, Bloomberg News has reported.

First-time share sales have raised US$1.24 billion in Singapore this year, down 17% from a year ago, data compiled by Bloomberg show.

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