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Mapletree closes US$1.4 billion United States Logistics Fund, targets IRR of 12%

Goola Warden
Goola Warden • 2 min read
Mapletree closes US$1.4 billion United States Logistics Fund, targets IRR of 12%
Mapletree closes US$1.4 billion US logistics fund achieving record year of private fund raised
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Mapletree Investments announced the successful closing of its third private fund in 2021, Mapletree US Logistics Private Trust (MUSLOG), at US$1.4 billion ($1.9 billion) in total fund equity.

Following the successful syndication of Mapletree US & EU Logistics Private Trust (MUSEL) in 2019, Mapletree has continued to scale up its presence in the US logistics market. The Group now manages 355 logistics assets with an AUM of US$6.9 billion, totalling 6.5 million sqm or 70 million sq ft of NLA, placing Mapletree among the top 10 managers of logistics real estate in
the US.

MUSLOG is fully invested at closing with a total asset value of approximately US$3.3 billion and was well received by a well-diversified group of new and repeat investors comprising pension funds, insurance companies, investment companies, asset managers and family offices. The Trust’s target of 12% IRR represents both a yield plus growth total return from a resilient and income-generating portfolio.

The MUSLOG portfolio comprises 155 logistics properties located across 19 states in the US, with a total NLA of approximately 2.9 million sqm or 30.7 million sq ft. The properties are located in close proximity to major logistics infrastructures such as cargo airports, ports, intermodal nodes and railway.

The high occupancy portfolio of 95% is supported by a high quality and well-diversified tenant base from growth sectors such as third-party logistics and end-user tenants, which are expected to benefit from the structural uplift in the U.S. logistics sector driven by the proliferation of e-commerce demand. In addition, MUSLOG has a Weighted Average Lease Expiration (WALE) of 4.1 years.

MUSLOG brings the Group’s global logistics AUM to US$18 billion positioning Mapletree as one of the top six logistics players globally. In addition to MUSLOG, Mapletree syndicated two other funds in 2021, (a) Mapletree US Income Commercial Trust (MUSIC), a US$552 million US office fund and (b) Mapletree Europe Income Trust (MERIT), a EUR507 million European office fund.

See also: Standard Chartered sets up first global fund management entity in Singapore

Total private funds raised in 2021 was US$2.5 billion private fund AUM to US$13.8 billion Mapletree will maintain a strong alignment of interest with investors by retaining a minimum 20% stake in MUSLOG, similar to its approach with other Mapletree-sponsored private funds.

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