Mapletree raises €507m for first European office fund

Mapletree raises €507m for first European office fund
3 Hardman Street located in Spinningfields, Manchester, a 12-storey building with an NLA of 36,704 sqm.

Singapore-based real estate investment company Mapletree Investments has raised €507 million (S$816 million) for its first European office fund, Mapletree Europe Income Trust (MERIT).

”Third party fundraise was approximately 1.5 times covered with strong participation from new and repeat investors comprising pension funds, insurance companies, investment companies, asset managers and private banking clients,” said Mapletree in a statement.

MERIT’s portfolio consists of seven Grade A office properties with a total net lettable area (NLA) of  270,000 sqm in key European and United Kingdom cities at a total asset value of €1.2 billion (S$1.93 billion).

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“Since 2015, when Mapletree expanded beyond Asia and entered markets such as Europe, UK and the United States, the Group has nearly doubled its assets under management and grew its funds under management by 50%. The Group’s robust underwriting philosophy complemented with strong local asset management expertise have enabled us to continually source, structure and develop quality investment products,” said Hiew Yoon Khong, Mapletree’s Group Chief Executive Officer.

”The successful fund raise of MERIT amidst the current Covid-19 pandemic demonstrates the confidence and endorsement that investors have in Mapletree’s fund management capability and track record. Investors of MERIT will benefit from a robust and stable income stream generated from a portfolio of high quality European commercial assets, anchored by long lease profiles,” he added.

MERIT’s Grade A office assets are strategically located in regional cities, Manchester, Bristol, Aberdeen, Warsaw, Munich, Dublin, and Utrecht.

Mapletree said the portfolio boasts high occupancy and a long WALE of 6.8 years.