Singapore-based real estate firm Mapletree Investments has reached a final close on its Japan office fund, raising ¥65 billion (€502.34 million; $540.27 million) in equity commitments, far exceeding its original ¥40 billion target.
Mapletree declined to comment on fundraising. PERE however understands that fundraising for the vehicle, called MJOF, was wrapped up in January this year. The total capital was raised from ten Asian institutional investors, which include insurance companies and endowments. A return target of low to mid-teens has been set for the fund.
The close-ended fund was launched in 2013, with a strategy to invest in stable, income-producing assets on the fringe of Tokyo’s central business district and the greater Tokyo area. The fund presented investors with four seed assets worth close to ¥16 billion, an approach adopted by the firm for most of its other real estate vehicles as well. Today, close to one quarter of the capital raised has already been invested in office properties in the greater Tokyo area.
The original fundraising target for MJOF of ¥40 billion was actually surpassed in the first close in June last year, when the fund attracted ¥57 billion in capital commitments.
The fund manager also operates another fund in Japan, which was launched at the same time as MJOF. Called MJLD, it is a close-ended development fund for logistics investments in the country. Fundraising for the vehicle was closed after the first close itself when ¥51 billion was raised in June last year, again more than its original target of ¥44 billion.
The firm’s Malaysia-focused property fund called CMREF 2, launched as part of a joint venture partnership between Mapletree Investments and Malaysia’s financial services provider CIMB Group, also closed at MYR 140 million (€35.86 million; $38.57 million) in June last year. The fund was originally launched in 2007 as a development fund with a MYR$1 billion target, but fundraising was put on hold following the onset of the global financial crises. It was re-launched in end 2011. PERE understands that no investments have so far been made for it however.