Singapore – Mapletree Investments Pte Ltd (“Mapletree” or “the Group”) recently signed two Memoranda of Understanding (“MOU”) with a local government in China and entered into a Strategic Partnership Agreement with a leading retail conglomerate to scale up its logistics real estate footprint in the country.

The two Memoranda of Understanding (“MOU”) were signed with the government of Zhengzhou in Henan Province, central China. Under the MOUs, Mapletree will build a 48,000 square metres (“sqm”) grade-A distribution centre in Nissan Park within the Zhengzhou Economic Development Zone, and a 96,000 sqm grade-A distribution centre in the Zhengzhou-Singapore International Logistics Park. These projects will strengthen Mapletree’s ability to address the logistics space requirements of logistics players in China.

Mapletree’s wide logistics network in China, in-depth industry expertise and financial strength were key considerations for WuMart Stores (“WuMart”) to enter into a Strategic Partnership Agreement with the Group. The Beijing-based WuMart is one of the top ten retail conglomerates in China and it operates the largest chain of hypermarkets and supermarkets in Beijing and Tianjin. Under the agreement, Mapletree will develop a logistics park in Tianjin to support WuMart’s logistics space requirements as it expands across China in the next three years.

The proposed logistics park for WuMart will be the third logistics development by Mapletree in Tianjin. The first two developments are Mapletree Tianjin Airport Logistics Park and Mapletree Tianjin Port HaiFeng Bonded Logistics Park.

To date, Mapletree has developed five logistics facilities in China, valued in excess of S$300 million, across Beijing, Tianjin, Yangshan and Wuxi. These logistics assets will be offered on a right of first refusal to Mapletree Logistics Trust (“MLT” or “the Trust”), whose portfolio in China includes five logistics assets in Shanghai, Xi’an and Guangzhou.

Mr Hiew Yoon Khong, Group Chief Executive Officer of Mapletree, said, “We are encouraged by the signing of the MOUs with Zhengzhou government and partnership agreement with WuMart as they affirm Mapletree’s growing reputation as a leading logistics real estate partner of choice in China. In addition, these strategic tie-ups also provide new sources of acquisition pipelines for Mapletree Logistics Trust under the right of first refusal arrangement, which Mapletree as sponsor has given to the Trust.”

“China currently holds about 12% of the Group’s total real estate assets and going forward, we see opportunities for us to grow even further. Apart from the logistics real estate space, Mapletree will continue to pursue our strategy to scale up our presence in China across various asset classes, not only in the tier 1 cities but also the inland cities,” he added.