SINGAPORE – Mapletree Investments Pte Ltd (“Mapletree” or the “Group”), a leading Asia-focused real estate development, investment and capital management company, is pleased to announce the final closing of its private real estate fund, Mapletree China Opportunity Fund II (“MCOF II” or the “Fund”) at its hard cap or maximum target of US$1.4 billion. This is well above the initial target of US$1.0 billion. At US$1.4 billion, MCOF II is one of the largest China-focused private equity real estate funds raised to-date. Seeded by two mixed-use development projects, MCOF II was closed within 10 months after its marketing launch in October 2012, and just two months after its first closing at the end of June 2013 for US$1.1 billion.
Commenting on the swift and successful close of MCOF II, Group Chief Executive Officer of Mapletree, Mr Hiew Yoon Khong said, “Capital management is key to us in executing our business objective to generate consistent and high returns. We have a range of offerings for different risk-return investor profiles. The establishment of MCOF II is facilitated by the successful investments and realisations we have made in the China market. Mapletree has been investing in China since 2005 and has over the years built considerable experience, knowledge and track record to position us to invest successfully in China for MCOF II”.
He added, “At the same time, we believe in aligning our own capital commitment significantly with our co-investors. For MCOF II, we have committed 36% of the Fund’s total capital commitments”.
FOCUSED ON CHINA
MCOF II is the second China-focused fund sponsored by Mapletree, and a follow-on investment vehicle to its US$1.2 billion Mapletree India China Fund (“MIC Fund”). The MIC Fund held its final closing in 2008 and fully committed its capital to projects in mid-2012, well ahead of the April 2013 end of its investment period. The MIC Fund has since made two profitable realisations, which resulted in cumulative distributions to investors amounting to nearly 90% of total paid-in capital to MIC Fund. MCOF II will continue the Group’s successful strategy of investing in the development of integrated mixed-use or single-use projects as well as investing in projects with value enhancement potential located in China Tier I and Tier II cities. The Fund’s primary target asset classes include office, business park, retail, industrial, serviced apartment and residential projects.
MCOF II is seeded by two substantial assets that represent approximately 15% of the Fund. Both assets are currently under construction, with one located in Shanghai and the other in Southern China.
Key Property Details
| Mapletree Minhang Development Project | South Station Enterprise City | |
| Property Description | Comprising two Mapletree flagship developments – Mapletree Business City and VivoCity. Seven blocks of Grade-A office buildings and a one-stop shopping and lifestyle mall. | Comprising 23 premium office buildings, ranging from nine to 21 storeys. |
| Location | Xinzhuang CBD, Minhang District, Shanghai | Sanshan New City, Nanhai District, Foshan |
| Type | Mixed-use: Office and retail | Mixed-use: Office and business space |
| Gross Floor Area | 297,000 square metres | 500,000 square metres |
| Year of Completion | 2015 onwards (in phases) | 2014 onwards (in phases) |
The offering of MCOF II received strong investor support from North America, Europe, the Middle East and Asia, with demand in excess of the Fund’s hard cap. Consistent with Mapletree’s objective of broadening its global investor base, the majority of MCOF II’s investors represent new relationships, in addition to repeat investors from Mapletree’s first China-focused fund.
Greater China is Mapletree’s largest overseas market with total assets under management of S$6.86 billion as at 31 March 2013. The Group’s development experience in the country has also extended over different asset classes such as office, retail, residential, industrial and logistics.
Mapletree’s Regional Chief Executive Officer for China and India, Mr Quek Kwang Meng said, “Investors’ favourable response to MCOF II demonstrates their confidence in Mapletree’s development strength in mixed-use projects, and in our substantial China platform. China is an important market for Mapletree to scale up given its continued economic growth and urbanisation. With increased decentralisation as well as the growing affluence and consumer spending by a large middle class, there is increased demand for well-located, well-designed and well-managed real estate”.
“At the same time, the real estate market is experiencing tighter credit conditions and the domestic development sector is undergoing a period of consolidation, thereby increasing the need for well-capitalised, experienced real estate investors. Mapletree believes that these fundamentals position us to grow in China as it provides opportunities for MCOF II to pursue its development-oriented as well as value enhancement acquisition investment strategy”, he added.
MCOF II is approved as an Enhanced-Tier Fund Tax Incentive Scheme by the Monetary Authority of Singapore, providing it with certain tax efficiencies. Mapletree Real Estate Advisors Pte. Ltd. is the Investment Advisor to the Fund. Hodes Weill Securities, LLC acted as global placement agent for MCOF II.
