Mapletree raises US$446m for private Australian office trust

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Singapore-based real estate asset manager Mapletree Investments has raised A$654m (US$446m) for its new private Australian office fund, targeting a 12% IRR and growing net cash yields.

111 Pacific Highway, North Sydney

The MASCOT Private Trust owns a A$1.4bn portfolio comprising 10 grade A office assets across Sydney, Melbourne, Adelaide, Brisbane and other cities, the firm announced.

Mapletree, which will manage and retain a 27% stake in the fund, raised commitments from pension funds, insurers, regional banks and corporates, as well as high net worth (HNW) and family office investors.

“The strong property and economic fundamentals are what attracted Mapletree’s entry into Australia in 2014,” said Mapletree CEO Hiew Yoon Khong.

“With limited supply of quality Grade A office assets in the pipeline, rents are expected to grow over the medium term.

“The group is optimistic regarding the performance of its investments in Australia and will continue to grow its footprint there, including expanding our portfolio of logistics assets.”

The 160,000 sq.m. portfolio has a 94% occupancy rate, and is let to a diversified tenant pool from the media and telecom, government, mining, oil and gas, and technology sectors.

The fund has a five-year term and two one-year extension options, and will make distributions in Australian dollars on a half-yearly basis.

MASCOT joins Mapletree’s roll of sponsored private funds, including the Mapletree Global Student Accommodation Private Trust (MGSA), Mapletree US & EU Logistics Private Trust (MUSEL), and its four Singapore-listed REITs.

11 Waymouth Street, Adelaide

The new trust follows a series of new funds specialising in logistics and student accommodation across Europe and the US that were launched over the past two years.

“The syndication of MASCOT is in line with the Group’s business model, which includes being an active capital manager in both the public and private markets that constantly seeks opportunities to structure attractive investment products for a wide spectrum of investors,” the CEO noted.

“Going forward, we will continue to originate investment products and syndicate new funds to grow our capital management business and fulfil the demand of our investors.”

Mapletree owns and manages S$55.7bn of office, retail, logistics, industrial, residential and lodging properties across Asia Pacific, Europe and the US.