Singapore-based real estate firm Mapletree Investments Pte Ltd has raised about $1.8 billion in equity for its first pan US-European logistics fund from institutional, corporate, and high net worth investors, according to a statement.
The fund, MUSEL Private Trust, is fully invested in a portfolio comprising 262 logistics assets across 26 states in the US and 20 cities across seven European countries, with a total investment value of $4.3 billion, said the firm backed by Singapore state investor Temasek Holdings.
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 firm said. Mapletree will retain a 34 per cent stake in the trust, which will be managed by Mapletree Real Estate Advisors.
MUSEL’s properties in the US are strategically located close to population and consumption centres in California, Texas, Pennsylvania, New Jersey, and in the Midwest. In Europe, the portfolio is diversified across seven countries which include Poland, France, Germany, and Spain.
Even with the current backdrop of economic uncertainty, Mapletree expects the portfolio to generate stable dividends and attractive total returns, said group CEO Hiew Yoon Khong.
“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,” Hiew said.
The syndication of the pan US-European fund follows a series of other fully seeded funds that Mapletree has syndicated in the commercial sector in Australia and student accommodation sectors in the UK and the US over the last three years.
Mapletree Investments owns and manages S$55.7 billion ($37 billion) of office, retail, logistics, industrial, residential, and lodging facilities through its four Singapore-listed REITs and six private equity real estate funds that hold assets in Asia, Europe, the UK, and the US.
In an interview with Bloomberg in June, Hiew said the firm aims to increase assets managed to S$90 billion ($61 billion) within the next five years and may strike up to S$10 billion of deals annually by buying and selling properties.