Singaporean landlord Mapletree Investments has seeded its second US logistics fund with $3 billion of assets as it continues to scale up its investments in the country, PERE can reveal exclusively.
The real estate firm has invested $3 billion to acquire two logistics portfolios totaling 141 high-quality, income-producing assets in the US over the past three months. The first portfolio acquired in July was comprised of 24 assets across Dallas, Memphis, Greater Chicago, Central Florida and Boston. It has an occupancy rate of 98.9 percent and a weighted average lease to expiry of 3.3 years. The second portfolio was then acquired in September with 117 assets in Greater Chicago, the Carolinas, Memphis, Houston and Washington, DC/Baltimore. The portfolio was 94 percent occupied with a weighted average lease to expiry of 4.1 years.
Michael Smith, regional chief executive officer of Europe and USA at Mapletree Investments, said in statement that “the US logistics sector is amongst the best performing and most resilient of all the real estate markets” and the recent logistics acquisitions have allowed the firm to “attained sufficient scale and investor interest” to create a new private fund.
The two portfolios will be brought into Mapletree US Logistics Private Trust, the firm’s second US logistics fund, which has $3.3 billion in AUM. In addition to that, the fund has already been seeded with 14 logistics facilities. With a total of 155 assets, PERE understands that the fund is expected to close before the end of the year.
Last year, the Singapore firm closed its first pan US-European logistics fund Mapletree US & EU Logistics Private Trust at $1.8 billion. The fund was fully seeded with 262 logistics assets across 26 states in the US and 20 cities across seven European countries. With the two US logistics vehicles, Mapletree Investments has built an overall portfolio of 355 logistics facilities totaling close to $7 billion of AUM in the country.
With a focus on the industrial sector, the investment firm has increased its exposure in the US real estate market significantly since Smith joined in 2017. Under his leadership, the firm’s US real estate portfolio grew from $0.5 billion in 2016 to $14.8 billion in 2021. Last week, it closed its US office fund Mapletree US Income Commercial Trust at $552 million of fresh equity.