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Mapletree plots $4bn REIT

The real estate investment arm of Singapore is waiting for improved market conditions before triggering an IPO. Vietnam and industrial funds are also planned.

Mapletree, the real estate investment arm of Singapore investment company Temasek, is planning to list a REIT which could hold up to $4 billion in assets.

According to multiple reports, the firm said it would launch an initial public offering when market conditions  improved.

A report by Bloomberg said the proposed Mapletree Commercial Trust would hold assets including Singapore’s largest shopping centre, VivoCity, as well as other well known buildings including Singapore’s port authority occupied-PSA Building and St James PowerStation.

Temasek, which is led by Ho Ching, the wife of Singaporean prime minister Lee Hsien Loong, is no stranger to the public REIT market. The firm already manages stakes in four REITs through CapitaLand, an investment unit.

Also readied for launch is a Vietnam-focused real estate fund and an Asian industrial fund, both of which, would target an equity raising of between $500 million and $1 billion and would be launched in the next 12 months.

The three plans are part of a wider strategy for Temasek to become “a real estate capital management type of business” according to Reuters, which also reported that Mapletree aimed to grow real estate assets under management to “at least $14 billion between the next three to five years.

The firm currently manages almost $8.4 billion in real estate across Asia.