Mapletree Investments raises US$552M for US office property fund

Located in the Research Triangle in Raleigh, North Carolina, Perimeter Properties comprises three office buildings. Mapletree US Income Commercial Trust holds the property. Credit: Mapletree Investments.Located in the Research Triangle in Raleigh, North Carolina, Perimeter Properties comprises three office buildings. Mapletree US Income Commercial Trust holds the property. Credit: Mapletree Investments.

Mapletree Investments has closed its first U.S. office property fund, Mapletree US Income Commercial Trust (MUSIC), with US$552 million, or around S$745.2 million, in total equity, all of which is fully invested, the subsidiary of Singapore’s state-owned investment company Temasek Holdings said Thursday.

“MUSIC is in line with the Group’s aim to structure attractive investment products for a wide spectrum of investors,” the company said in a statement posted to its website, pointing to strong participation from new and repeat investors, including pension funds, insurance companies, investment companies, asset managers and private banking clients.

Hiew Yoon Khong, Mapletree’s group CEO, said the successful closing of MUSIC reflected the group’s ability to source, structure and manage quality investment products.

“It is also underpinned by the group’s strong operations team of onshore asset and property managers. Going forward, we will continue to formulate new products for syndication,” Hiew said in the statement.

The portfolio holds five Class A commercial properties, located in Oakland, Raleigh, Dallas and Minneapolis, with a total asset value of around US$1.3 billion, or around S$1.8 billion, the statement said.

Mapletree Investments said it will retain a 22 percent stake in MUSIC, in line with its strategy with other private funds and Singapore-listed REITs it has sponsored.

The trust is targeting 12 percent IRR, for yield plus growth total return from a resilient and income-generating portfolio, the statement said.

Mapletree Investments said its assets under management in the U.S. stands at US$12.3 billion, with the asset classes including commercial, data centers, logistics, student housing and lodging.

Earlier this year, Mapletree Investments closed another private fund, the Mapletree Europe Income Trust, or MERIT, a 507 million euro, or around S$806.1 million, European office fund.

As of end-March, Mapletree Investments owned and managed S$66.3 billion of properties in the data center, industrial, lodging, logistics, mixed-use, multifamily, office, residential and retail sectors. Mapletree Investments is wholly owned by Singapore state-owned investment company Temasek Holdings.