Singapore – Mapletree Investments Pte Ltd (“Mapletree”) today announced that it has signed a Memorandum of Understanding (“MOU”) to enter into a joint venture with Japan’s ITOCHU Corporation (“ITOCHU”) to undertake primarily Build-to-Suit development projects for strong logistics tenants in Japan.

The two companies also cemented their strategic alliance by extending for a further two years through another MOU to collaborate on investment and development of logistics, retail, industrial and commercial real estate projects in Japan, Singapore and the rest of Asia. This marked the second extension of the strategic alliance MOU between Mapletree and ITOCHU, which was first signed in October 2005 to collaborate primarily in the area of logistics real estate and extended in November 2007 through a Supplemental MOU (“SMOU”) to expand the scope of collaboration.

Mr Hiew Yoon Khong, Chief Executive Officer of Mapletree said, “We are delighted to continue our mutually successful and enriching partnership with ITOCHU. The October 2005 MOU and November 2007 SMOU facilitated Mapletree’s entry into the logistics real estate market in Japan. Through our collaboration with ITOCHU, Mapletree has been able to establish our footprint in the logistics real estate market in Japan with the acquisition of seven logistics assets in Japan worth a total of S$571 million. ITOCHU is also now an investor in our Mapletree Industrial Trust (“MIT”) which holds the S$1.7 billion Industrial assets privatised by JTC Corporation.”

“This new JV and extension of the MOU affirm both parties’ intent to further strengthen and deepen the strategic partnership and leverage on each others’ strengths and capabilities to harness the opportunities in the real estate market in Asia, particularly where windows of opportunity exist in this economic environment. We hope to further entrench Mapletree’s presence in Japan as there is a growing demand by logistics operators for new and well built logistics and distribution facilities. Given the current economic climate, there are not many players able to fulfill the needs of these operators, hence Mapletree intends to step up and provide this solution together with our partner, Itochu. The completed assets will be offered to our logistics Real Estate Investment Trust, Mapletree Logistics Trust, on a right of first refusal basis to enhance and grow the distributions of the Trust. We look forward to scaling up our business further in Japan in partnership with ITOCHU and jointly developing US$300 million to US$500 million worth of properties of logistics properties over the next 24 months, “he added.