Mapletree Investments has closed its maiden US office fund, Mapletree US Income Commercial Trust (MUSIC) with US$552 million (~S$745.2 million) in total fund equity.
The Trust’s target of 12% IRR represents both a yield plus growth total return from a resilient and income-generating portfolio, the company said in a press release.
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 billion). 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.
Mapletree said 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 Trust, a EUR507 million (~S$806.1 million) European office fund, adding more than US$2.7 billion (~S$3.6 billion) of AUM to date with US$1.2 billion (~S$1.6 billion) 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 billion(~S$16.6 billion), 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.”