Mapletree closes US logistics fund at US$1.4bn

Mapletree closes US logistics fund at US$1.4bn
The 96,526 sqm (1,039,000 sq ft) warehouse, located close to the Memphis International Airport, Tennessee, US. Image: Mapletree

Mapletree Investments has raised US$1.4 billion (S$1.9 billion) for US logistics fund, Mapletree US Logistics Private Trust.

Mapletree said it now manages 355 logistics assets with an AUM of US$6.9 billion (S$9.2 billion) in the US logistics market, totaling 6.5 million sqm (70 million sq ft) of NLA, placing the company among the top 10 managers of logistics real estate in the US.

Mapletree US Logistics Private Trust(MUSLOG) is fully invested at closing with a total asset value of approximately US$3.3 billion (S$4.5 billion) 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 company said.  

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% 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. 

“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 billion), 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,” said Hiew Yoon Khong, Mapletree’s Group Chief Executive Officer.

In addition to MUSLOG, Mapletree syndicated two other funds in 2021, Mapletree US Income Commercial Trust (MUSIC), a US$552 million (S$745.2 million) US office fund and Mapletree Europe Income Trust (MERIT), a EUR507 million (S$806.1 million) European office fund.

”Total private fundraise in 2021 was US$2.5 billion (S$3.4 billion), breaking previous fundraising records and enabled an increase in private fund AUM to US$13.8 billion (S$18.7 billion),” said the company in a statement. 

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 20 percent stake in MUSLOG, similar to its approach with other Mapletree-sponsored private funds.