Mapletree Raises US$552m For 1st US Office Fund
USA – Mapletree Investments announced today that it has closed its inaugural office fund in the United States, amassing US$552 million (S$745.2 million) in overall fund equity, according to a press release published on Thursday afternoon (23 September, SGT).
Known as Mapletree US Income Commercial Trust (MUSIC), the fund’s portfolio comprises 5 freehold Grade A commercial properties with a combined net lettable area (NLA) of roughly 3.068 million sq ft.
With a total asset value of around US$1.3 billion (S$1.8 billion), the office properties are situated in key growth US cities that boast positive socio-economic and demographic profiles, namely Dallas, Raleigh, Oakland, and Minneapolis.
“The MUSIC portfolio has a long Weighted Average Lease Expiration (WALE) of 8.8 years and enjoys a high occupancy rate of around 96 percent. This resilient portfolio is anchored around a diversified and high quality tenant base with significant exposure to the growth sectors of technology, media, and telecommunications, as well as healthcare and pharmaceuticals,” noted the Temasek-owned company.
Aside from that, the Singapore-based real estate investment firm revealed that it is targeting an internal rate of return (IRR) of 12 percent for MUSIC.
The company’s maiden US office fund also saw robust participation from new and repeat investors consisting of pension funds, insurance providers, investment firms, asset managers and private banking customers.
Mapletree Investments disclosed that just like with its other sponsored funds, it will keep a 22 percent in MUSIC to uphold a strong alignment of interest with the MUSIC’s investors.
“MUSIC’s successful closing reflects the group’s ability to source, acquire, manage and structure quality investment products that are aligned with investors’ requirements and interests. It is also underpinned by the group’s strong operations team of onshore asset and property managers,” added Mapletree’s Group CEO Hiew Yoon Khong.