SINGAPORE (THE BUSINESS TIMES) – Mapletree Investments has closed its third private fund of the year, Mapletree US Logistics Private Trust (Muslog), at a total fund equity of US$1.4 billion (S$1.9 billion).
This brings the total private funds raised in 2021 to US$2.5 billion – the highest ever raised in a year, said Mapletree on Wednesday (Dec 1).
The trust also places the group among the top 10 managers of logistics real estate in the US, where it now manages 355 logistics assets with assets under management (AUM) of US$6.9 billion totalling 6.5 million square metres (sq m) of net lettable area.
Muslog itself comprises 155 logistics assets with net lettable area of about 2.9 million sq m across 19 US states. The properties are situated near major logistics infrastructures such as cargo airports, ports, intermodal nodes and railways, the group pointed out.
The portfolio’s high occupancy of 95 per cent is supported by a tenant base from growth sectors such as third-party logistics and end-user tenants, which are expected to benefit from the structural uplift in the US logistics sector driven by the proliferation of e-commerce demand.
With that, Mapletree said Muslog, which has a weighted average lease expiration of 4.1 years, has set a target of a 12 per cent internal rate of return (IRR), and is “fully invested” at closing with a total asset value of some US$3.3 billion.
The 12 per cent IRR target represents both a yield plus growth total return from a resilient and income-generating portfolio, it added.
The group, meanwhile, noted that Muslog was well received by a diversified group of new and repeat investors comprising pension funds, insurance companies, investment companies, asset managers and family offices.
Mapletree’s group chief executive officer Hiew Yoon Khong said Muslog’s successful syndication demonstrates the confidence investors have in Mapletree’s fund management and operational capabilities.
He added that Muslog brings the group’s global logistics AUM to US$18 billion, positioning Mapletree as one of the top 6 logistics players globally.
“The group will continue to source and develop quality investment products that are aligned with investor’s requirements and interests,” Mr Hiew said.
Muslog will be Mapletree’s 13th private equity fund.
Pointing out that Muslog will be managed by Mapletree Real Estate Advisors, Mapletree’s wholly-owned subsidiary, the group said it will maintain a “strong alignment of interest” with investors by retaining a minimum 20 per cent stake in Muslog.
This is similar to its approach with other Mapletree-sponsored private funds, it noted.
Apart from Muslog, the two other funds which Mapletree had syndicated in 2021 are Mapletree US Income Commercial Trust, a US$552 million US office fund, and Mapletree Europe Income Trust, a 507 million euro (S$783.5 million) European office fund.