Mapletree Investments raises $552 million for first US office fund

SINGAPORE (THE BUSINESS TIMES) – Mapletree Investments has closed its first US office fund, Mapletree US Income Commercial Trust (Music), with US$552 million (S$745 million) in equity raised.

In a statement on Thursday, September 23, the Temasek-owned company said Music’s target internal rate of return (IRR) of 12% represents both yield and growth total return from a resilient, growth-generating portfolio. income.

Managed by Mapletree’s wholly-owned subsidiary, Mapletree Real Estate Advisors, Music is Mapletree’s 12th private equity fund and the fifth in a series of fully seeded funds encompassing Europe and Australia, trade logistics in Europe and the United States, as well as student accommodation in Great Britain and the United States. states.

Its portfolio comprises five freehold Class “A” commercial properties with a total net leasable area (NLA) of 285,000 m² and a total asset value of US$1.3 billion. It has a weighted average lease term of 8.8 years and an occupancy rate of approximately 96%.

The trust is fully invested at closing and in line with the group’s goal of structuring attractive investment products for a wide range of investors, according to Mapletree.

It will make semi-annual distributions in US dollars for an initial term of five years, with the possibility of two one-year extensions.

In its statement, the group highlighted Music’s diverse and quality tenant base, with significant exposure to the growing sectors of technology, media and telecommunications, as well as healthcare and pharmaceuticals.

The locations of its office assets in major U.S. growth cities — Oakland, Raleigh, Dallas and Minneapolis — have favorable socioeconomic and demographic profiles, according to the group.

Mapletree said it would retain a 22% stake in Music to maintain a strong alignment of interest with investors.

This is similar to the group’s approach with other Mapletree-sponsored funds as well as its four Singapore-listed Real Estate Investment Trusts (Reits), namely: Mapletree Logistics Trust, Mapletree Industrial Trust, Mapletree Commercial Trust and Mapletree North Asia Commercial Trust.

Music is the second new private fund to be closed by Mapletree this year after the group’s €507 million (S$800 million) European desktop fund, Mapletree Europe Income Trust.

The closing of the two funds raised US$1.2 billion and added more than US$2.7 billion to Mapletree’s assets under management (AUM) to date, bringing its US AUM to US$12.3 billion. US dollars.

“Music’s successful closing reflects the group’s ability to source, acquire, manage and structure quality investment products that match investor requirements and interests. It is also underpinned by the group’s strong operating team of onshore asset and property managers,” Mapletree Group said. general manager Hiew Yoon Khong.

“Going forward, we will continue to formulate new products for syndication,” he added.

Jose C. Birney