- Targets Trust Return of 12% internal rate of return (“IRR”)
- Strong participation from new and repeat investors comprising pension funds, insurance companies, investment companies, asset managers and private banking clients
- Second successful fund close in 2021; Increase in total Assets Under Management (“AUM”) of Mapletree’s private funds by US$2.7 billion (~S$3.6 billion1) to US$10.5 billion (~S$14.2 billion1) in 2021
SINGAPORE – Mapletree Investments Pte Ltd (“Mapletree” or “the Group”) is pleased to announce the successful closing of its maiden US office fund, Mapletree US Income Commercial Trust (“MUSIC” or “the Trust”). With US$552 million (~S$745.2 million1) in total fund equity, all of which is fully invested at closing, MUSIC is in line with the Group’s aim to structure attractive investment products for a wide spectrum of investors. The Trust’s target of 12% IRR represents both a yield plus growth total return from a resilient and income-generating portfolio.
The MUSIC portfolio consists of five freehold Class A commercial properties with a total net lettable area of approximately 285,000 square metres (“sqm”) and a total asset value of approximately US$1.3 billion (~S$1.8 billion1). These office assets are located in key growth cities across the US, namely Oakland, Raleigh, Dallas and Minneapolis, which boast favourable socio-economic and demographic profiles. The MUSIC portfolio has a long Weighted Average Lease Expiration (“WALE”) of 8.8 years and enjoys a high occupancy rate of ~96%. This resilient portfolio is anchored around a diversified and high quality tenant base with significant exposure to the growth sectors of technology, media, and telecommunications, as well as healthcare and pharmaceuticals.
Amidst strong demand from both existing and new investors, Mapletree has closed two new private funds in 2021, namely MUSIC and Mapletree Europe Income Trust2(“MERIT”), a EUR507 million (~S$806.1 million1) European office fund, adding more than US$2.7 billion (~S$3.6 billion1) of AUM to date with US$1.2 billion (~S$1.6 billion1) of total fundraise.
Mr Hiew Yoon Khong, Mapletree’s Group Chief Executive Officer said, “Since 2014, Mapletree has grown our AUM in the US significantly. The Group’s AUM in the US currently stands at US$12.3 billion3(~S$16.6 billion1), across a range of asset classes such as commercial, data centres, logistics, student housing and lodging. MUSIC’s successful closing reflects the Group’s ability to source, acquire, manage and structure quality investment products that are aligned with investors’ requirements and interests. It is also underpinned by the Group’s strong operations team of onshore asset and property managers. Going forward, we will continue to formulate new products for syndication.”
The Group is also committed to incorporating sustainable practices and minimising its environmental footprint in its business operations. In line with Mapletree’s economic, social and governance strategy, the buildings in MUSIC’s portfolio are focused on (i) ensuring the health and well-being of tenants; (ii) obtaining green building certifications; and (iii) implementing sustainable operations including green lease adoptions.
The Trust will make distributions on a semi-annual basis in US dollars across an initial term of five years with provision for two, one-year extensions.
The Trust will be managed by Mapletree Real Estate Advisors Pte. Ltd., a wholly-owned subsidiary of Mapletree. The Group will maintain a strong alignment of interest with investors by retaining a 224per cent stake in MUSIC, similar to its approach with other Mapletree-sponsored private funds, and its four Singapore-listed real estate investment trusts (REITs). MUSIC will be Mapletree’s 12thprivate equity fund and the 5thin a series of fully seeded funds which encompass Europe and Australia commercial, Europe and US logistics, as well as student accommodation in the United Kingdom and US.
Footnotes:
1 Based on exchange rate of US$1 = S$1.35, EUR 1 = S$1.59.
2 For more information on MERIT: https://www.mapletree.com.sg/Media/News/2021/March/Mapletree%20Raises%20EUR507%20Million%20for%20First%20European%20Office%20Fund.aspx.
3 Mapletree’s AUM in the US as at 31 July 2021.
4 Eventual ownership stake including DSE ownership.
Uptown Station, located in the heart of downtown Oakland, California, is a historic eight-storey building that was fully refurbished in 2019. It has an NLA of 36,865 sqm and an additional 3,600 sqm of landscaped terrace space on the roof.
Located in Dallas, Texas, Galatyn Commons is a well-amenitised Class A office campus comprising four buildings with an NLA of 72,926 sqm, centred on a large landscaped courtyard.
Located in the Research Triangle in Raleigh, North Carolina, 8 Pack comprises eight office buildings with an NLA of 63,269 sqm.
Located in the Research Triangle in Raleigh, North Carolina, Perimeter Properties comprises three office buildings with an NLA of 47,097 sqm.
50 South Sixth, located in the heart of the Minneapolis Central Business District along the vibrant Nicollet Mall that boasts the highest concentration of restaurants, retailers and hotel rooms in the city, 50 South Sixth is a 29-storey office tower with an NLA of 64,903 sqm.
For enquiries on Mapletree’s private funds, please email PCM_Enquiries@mapletree.com.sg
