Mapletree Investments aims for $2.1 billion in Asia logistics push

According to a release on September 1, the company secured $250 million in commitments for the first close of Mapletree Emerging Growth Asia Logistics Private Trust (MEGA), a private fund focused on logistics development projects in Malaysia, Vietnam, and India. The group also raised more than $250 million through a joint venture and co-investments for selected development projects in Malaysia.

MEGA seeks to raise an additional $200 million in capital commitments for the second close targeted by early next year.

Altogether, Mapletree’s Emerging Asia logistics development strategy is expected to comprise assets with a total investment value of $2.1 billion when fully deployed.

The investors across the strategy include, among others, sovereign wealth funds, a pension fund, and a national investment company.

MEGA seeks to raise an additional $200 million in capital commitments for the second close targeted by early next year. MEGA will focus on logistics development opportunities across Malaysia, Vietnam, and India markets were growing domestic consumption, manufacturing activity, and supply chain diversification continue to drive demand for modern logistics facilities amid a structural undersupply of institutional-grade logistics space.

The fund is targeting to deliver an internal rate of return more than mid-teens and will provide its investors access to Mapletree’s integrated real estate capabilities and established logistics development track record.

MEGA has an initial seeded portfolio comprising four development projects in Malaysia, one development project in India and two warehouses in Vietnam.

According to Hiew Yoon Khong, Group CEO, Mapletree, the group was encouraged by the strong support received from established institutional investors across the company's Emerging Asia logistics development strategy.

“MEGA’s successful first close marks an important milestone and the commitments received reflect confidence in Mapletree’s ability to deliver development value across market cycles,” Khong said.

"Integrated real estate capabilities have allowed Group to pursue an accelerated development strategy which differentiates Mapletree from pure capital management players," he added.

Logistics is Mapletree’s largest asset class, accounting for approximately 43 per cent of the Group’s assets under management, or around $25.5 billion.

According to Ng Kiat, regional CEO, Mapletree’s Asia-Pacific Logistics Development, MEGA provides investors with access to logistics development opportunities in select high-growth markets across emerging Asian economies.

“The fund’s successful first close reflects investors’ confidence in Mapletree’s global logistics platform, supported by our position as a market leader in Malaysia and Vietnam, experienced local teams and integrated real estate capabilities,” Kiat said.

MEGA is Mapletree’s 18th private real estate fund and the third in its recent series of logistics development-focused private funds, following the successful syndication of Mapletree China.

Headquartered in Singapore, Mapletree is a global real estate development, investment, capital, and property management company committed to sustainability.

The group’s assets are located across 13 markets globally, namely Singapore, Australia, Canada, China, Europe, Hong Kong, India, Japan, Malaysia, South Korea, the UK, the US, and Vietnam.

Artist's impression of Mapletree Logistics Hub, Utas Shah Alam, Malaysia. Photo: Mapletree

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