- Targets Trust Return of 12% internal rate of return (“IRR”)
- Fund comprises 155 logistics assets with a total net lettable area (“NLA”) of approximately 2.9 million square metres (“sqm”) (~30.7 million square feet [“sqft”]) across 19 states in the United States (“US”)
- Third successful fund close in 2021 and a record year of private fund raising; Increase in Assets Under Management (“AUM”) of Mapletree’s private funds by US$6.1 billion (~S$8.2 billion1) to US$13.8 billion (~S$18.7 billion1)
SINGAPORE – Mapletree Investments (“Mapletree” or “the Group”) is pleased to announce the successful closing of its third private fund in 2021, Mapletree US Logistics Private Trust (“MUSLOG” or “the Trust”), at US$1.4 billion (~S$1.9 billion1) in total fund equity. Following the successful syndication of Mapletree US & EU Logistics Private Trust (MUSEL)2 in 2019, Mapletree has continued to scale up its presence in the US logistics market. The Group now manages 355 logistics assets with an AUM of US$6.9 billion (~S$9.2 billion1), totaling 6.5 million sqm (~70 million sq ft) of NLA, placing us among the top 10 managers of logistics real estate in the US3.
MUSLOG is fully invested at closing with a total asset value of approximately US$3.3 billion (~S$4.5 billion1) and was well received by a well-diversified group of new and repeat investors comprising pension funds, insurance companies, investment companies, asset managers and family offices. The Trust’s target of 12% IRR represents both a yield plus growth total return from a resilient and income-generating portfolio.
The MUSLOG portfolio comprises 155 logistics properties located across 19 states in the US, with a total NLA of approximately 2.9 million sqm (~30.7 million sq ft). The properties are located in close proximity to major logistics infrastructures such as cargo airports, ports, intermodal nodes and railway. The high occupancy portfolio of 95%4 is supported by a high quality and well-diversified 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. In addition, MUSLOG has a Weighted Average Lease Expiration (“WALE”) of 4.1 years.
Mr Hiew Yoon Khong, Mapletree’s Group Chief Executive Officer said, “Driven by shifts in consumer behaviour towards e-commerce and supportive macro fundamentals, the US logistics sector is poised for continued strong growth. MUSLOG’s successful syndication demonstrates the confidence investors have in Mapletree’s fund management and operational capabilities, which are supported by the expertise of our local asset and property management teams. MUSLOG brings the Group’s global logistics AUM to US$18 billion (~S$24.3 billion1), positioning Mapletree as one of the top six logistics players globally. The Group will continue to source and develop quality investment products that are aligned with investor’s requirements and interests.”
In addition to MUSLOG, Mapletree syndicated two other funds in 2021, i.e., (a) Mapletree US Income Commercial Trust (MUSIC)5, a US$552 million (~S$745.2 million1) US office fund and (b) Mapletree Europe Income Trust (MERIT)6, a EUR507 million (~S$806.1 million1) European office fund. Total private fundraise in 2021 was US$2.5 billion (~S$3.4 billion1), breaking previous fundraising records and enabled an increase in private fund AUM to US$13.8 billion (~S$18.7 billion1).
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 minimum 207 percent stake in MUSLOG, similar to its approach with other Mapletree-sponsored private funds.
MUSLOG will be Mapletree’s 13th private equity fund and the 6th in a series of fully seeded funds which encompass Europe, US and Australia commercial, Europe and US logistics, as well as student accommodation in the United Kingdom and the US.
Occupied by one of the world’s largest 3PLs, this 96,526 sqm (~1,039,000 sq ft) warehouse is located close to the Memphis International Airport, Tennessee, US.
This warehouse facility is located in Southeast Memphis, Tennessee, US and is within 10 miles to Memphis International Airport and BNSF Intermodal.
This warehouse is located in the city of West Sacramento, California, US, with an NLA of 41,305 sqm (~444,600 sq ft).
Located in Arlington, Texas, US, this property is a modern big-box warehouse serving as one of the main distribution facilities for a large consumer retail company.
Located in Lakeland, Florida, US, this property has an NLA of about 33,445 sqm (~360,000 sq ft).
Footnotes:
1 Based on exchange rate of US$1 = S$1.35, EUR 1 = S$1.59.
2 For more information on MUSEL: https://www.mapletree.com.sg/Media/News/2020/April/USD1-8%20Billion%20Equity%20Raised%20for%20Mapletree%20First%20Pan%20US-European%20Logistics%20Fund.aspx
3 Source: Green Street US Industrial Outlook (January 2021) and based on logistics real estate space under management (sqm); only includes US national logistics owners.
4 As at 30 June 2021.
5 For more information on MUSIC: https://www.mapletree.com.sg/Media/News/2021/September/Mapletree%20Raises%20US$552%20Million%20for%20Inaugural%20United%20States%20Office%20Fund.aspx
6 For more information on MERIT: https://www.mapletree.com.sg/Media/News/2021/March/Mapletree%20Raises%20EUR507%20Million%20for%20First%20European%20Office%20Fund.aspx
7 Potential eventual ownership stake including DSE ownership.
