- Targets attractive total return with growing net cash yield
- Fund comprises a ~56 million sq ft portfolio of 262 logistics assets across 26 states in the United States and 20 European cities
- Supported by high quality and geographically diversified investor base of institutional, corporate and HNW investors
SINGAPORE – Mapletree Investments Pte Ltd (“Mapletree” or “the Group”) is pleased to announce the successful syndication of MUSEL Private Trust (“MUSEL” or “the Trust”) at approximately US$1.8 billion (~S$2.6 billion ) in total fund equity. MUSEL is a fully invested yielding portfolio comprising 262 logistics assets across 26 states in the United States (US) and 20 cities across seven European countries at a total investment value of US$4.3 billion (~S$6.1 billion1).
Mr Hiew Yoon Khong, Mapletree’s Group Chief Executive Officer said, “Despite the challenging macroeconomic global outlook, investors are attracted to the robust fundamentals of the logistics sector and resilience of our high-quality, income-producing logistics portfolio across the US and Europe. Our success in syndicating this fund is testament to the strong confidence that investors have in Mapletree’s capital management and global real estate capabilities. Even with the current backdrop of economic uncertainty, the Group expects the portfolio to generate stable dividends and attractive total returns.”
The syndication of MUSEL is in line with Mapletree’s business model, which includes being an active capital manager in both the private and public markets. The Group constantly seeks opportunities to structure attractive investment products for a wide spectrum of investors, including pension funds, insurance companies, regional banks and corporates, high net worth and family office investors as well as retail investors.
The Trust will be managed by Mapletree Real Estate Advisors Pte. Ltd., a wholly-owned subsidiary of Mapletree. The Group will retain a 34 per cent stake2 in MUSEL to align with investor interests; similar to its approach with other sponsored private funds such as Mapletree Australia Commercial Private Trust (MASCOT) and Mapletree Global Student Accommodation Private Trust (MGSA), and its four Singapore-listed real estate investment trusts (REITs).
Spanning approximately 56 million square feet (sq ft), MUSEL has a committed portfolio occupancy of 94.3% and a weighted average unexpired lease term (WAULT) of 4.4 years3. Its tenant base is well diversified with consumer goods, third-party logistics and supporting industries and e-commerce tenants comprising two thirds of the portfolio by lettable area.
MUSEL’s properties in the US are strategically located close to population and consumption centres such as California, Texas and Pennsylvania/New Jersey as well as key logistics and transportation hubs such as those in the Midwest. In Europe, the portfolio is diversified across 20 cities in seven countries which include Poland, France, Germany and Spain. These properties are also located in established distribution centres within major logistics markets and enjoy excellent access to key transportation nodes including highways, ports and airports.
In both the US and Europe, consumer expectations of faster delivery times are re-shaping supply chains and delivery methods, resulting in high demand for infill locations for last mile delivery, as well as bulk warehouses for distribution over larger geographic areas. In addition, companies are actively re-designing their supply chains to improve efficiency and cost-effectiveness, which in turn is driving the demand for logistics space. Such structural changes bode well for the prospects of the logistics sector.
MUSEL follows a series of other fully seeded funds that Mapletree has syndicated in the commercial sector in Australia and student accommodation sectors in United Kingdom and the US over the last three years. Going forward, the Group will continue to originate investment products and syndicate new funds to grow our capital management business and fulfill the demand of our investors.
Inwestycyjna 1, Gluchow, a distribution warehouse with 1,350,440 sq ft of net lettable area (NLA) is one of the logistics assets held by MUSEL in Poland.
1089 E. Mill, San Bernardino, California, with an NLA of 404,725 sq ft is one of the distribution warehouses held by MUSEL in the US.
1 Based on exchange rate as at 31 March 2020
2 Including director and senior management’s stake in MUSEL
3 As at 31 December 2019
