• Mapletree’s first China logistics fund, with a “build-to-core” strategy
• Initial US$1.8bn portfolio comprises 43 Grade A logistics properties totaling 3 million square metres (“sqm”) in net lettable area (“NLA”), and diversified across completed income generating assets, as well as development projects
• Solid set of initial results with a 4.6% growth in Fund net asset value (“NAV”) per Unit for the 3.5 month period since Fund inception until 31 March 2023
• Strong investor interest and results validate Mapletree’s leadership position in the China logistics market and competitive advantage in delivering on sustainable value-add returns in scale 

SINGAPORE – Mapletree Investments (“Mapletree” or “the Group”) is pleased to announce that Mapletree China Logistics Investment Private Fund (“MCLIP” or “the Fund”), has achieved a strong set of initial results with a 4.6% growth in Fund net asset value (“NAV”) per Unit for the 3.5 month period since Fund inception until 31 March 2023, implying an annualised total return of over 15%. The Fund’s total returns were backed by strong operational performance, reflected in Net Property Income outperformance, coupled with positive revaluation gains across the initial portfolio.

In line with its build-to-core strategy, the Fund saw the completion of two properties in February and April 2023, adding over 120,000 sqm to MCLIP’s completed portfolio¹, which will now span 1.7 million sqm. Over the course of the current Financial Year, a further 17 properties are expected to be completed, enabling the Fund to deliver further upside on development returns.

Located in Putian, Fujian, Mapletree Putian Xiuyu Comprehensive Logistics Park comprises four blocks of single-storey warehouses and has an NLA of 62,583 sqm. Installation of the solar panels is expected to be completed by September 2023

Mr Hiew Yoon Khong, Mapletree’s Group Chief Executive Officer said, “MCLIP’s strong results and investor support for the Fund launch are a testament to Mapletree’s strategy in China logistics, which aims to deliver on sustained profitability as well as stable and growing distribution yields. Since the Group’s entry into the China logistics market nearly two decades ago, Mapletree has established itself as the country’s top five leading logistics owner-operator with a growing footprint of close to seven million sqm in completed logistics AUM in over 70 cities and key logistics hubs. China continues to be a key focus of the Group’s overall logistics strategy, supported by domestic consumption growth, undersupply of institutional grade logistics warehouses in key Chinese cities and the sector’s robust underlying fundamentals.”

Since December 2022, China has seen an economic recovery supported by its reopening as well as targeted fiscal and monetary policies. As the business environment improves, China is well placed to be the world’s top growth economy in the near to medium term with its GDP growth target of over 5% this year.

Mr Lee Ark Boon, Mapletree’s Chief Executive Officer, Logistics Development, China, and Fund Manager of MCLIP said, “We are encouraged by MCLIP’s inaugural results despite a challenging operating environment and are confident of the Fund’s “build-to-core” strategy in delivering long-term, sustainable returns. This comes on the back of continued government focus on logistics as part of the nation’s infrastructure, as well as increasing institutional demand for China logistics from both foreign and domestic investors alike, and further supported by recent onshore developments for both RMB funds and C-REIT listings.”

The Group continues to invest into the China Logistics sector, using its balance sheet to source new opportunities and seed new development initiatives, which are potential pipelines for MCLIP and Mapletree Logistics Trust (“MLT”).

MCLIP, with its portfolio of institutional grade warehouses located across China, is well-placed to capitalise on growth opportunities in the sector. Leasing activities continue to be strong, especially from third-party logistics (“3PL”) and e-commerce customers who make up around 80% of Mapletree’s diversified tenant base in China.

Inaugural China Logistics Private Fund 

In December 2022, Mapletree successfully closed MCLIP and received strong interest from a pool of high-quality institutional investors which include leading insurance companies and endowment funds, all of whom are existing investors in other Mapletree private funds. The open-ended Fund aims to generate long-term, consistent total returns with a growing distribution yield paid on a semi-annual basis, through active management of a diversified portfolio. MCLIP’s assets benefit from strong rental fundamentals and the rare opportunity to enjoy value upside from attractive development margins.

In line with the Group’s overall sustainability approach, MCLIP aims to deliver a sustainable portfolio by ensuring that all of its properties are green certified, powered by renewable energy, where permissible, and have incorporated nature-based solutions to reduce carbon emissions as well as energy and water wastage. MCLIP’s portfolio will be fitted with solar panels with a planned total installation capacity of approximately 50 MWp, and targets to achieve carbon neutrality by 2027.

After seeding the portfolio of 43 assets into MCLIP, Mapletree continues to own a sizable portfolio of close to 50 completed and development projects on its balance sheet as of 31 March 2023. Mapletree’s China logistics platform is continually growing in scale as it acquires land for logistics development at an estimated value of approximately RMB 5 billion per annum, maintaining a substantial pipeline for both our REITs and private funds alike.

Supported by a strong local team with expertise across the real estate value chain, MCLIP’s fund strategy involves portfolio and distribution yield optimisation through active management of assets and regular capital recycling into higher yielding development projects.

The Fund will be managed by Mapletree Real Estate Advisors Pte. Ltd, a wholly owned subsidiary of Mapletree. The Group maintains a strong alignment of interest with investors by committing to a minimum 20 percent stake in MCLIP, similar to other Mapletree-sponsored private funds.

Mapletree is also the Sponsor and Manager of MLT, Singapore’s first Asia-Pacific focused logistics REIT with an AUM of S$12.8 billion as at 31 March 2023, spanning across nine geographic markets. In support of the MLT’s growth, Mapletree will continue to offer completed and stabilised projects as well as future sales of logistics assets to the REIT, despite the expiration of MLT’s right of first refusal five years after its listing date. As the Sponsor and Manager of MLT, Mapletree remains committed to the growth and success of both MLT and MCLIP.

As the Sponsor and Manager of MLT, Mapletree remains committed to the growth and success of both MLT and MCLIP

Located in Quanzhou, Fujian, Mapletree (Quanzhou TIZ) Logistics Park comprises four blocks of double-storey ramp up warehouses and has an NLA of 108,312 sqm.

Located in Chongqing, Mapletree Chongqing Bishan Logistics Park comprises 3 blocks of single storey-warehouses with ancillary office and has an NLA of 54,555 sqm.

Located in Xuzhou, Jiangsu, Mapletree (Huaihai) Supply-Chain Center comprises two blocks of single-storey warehouses and two blocks of double-storey ramp up warehouses and has an NLA of 93,373 sqm.

For enquiries on Mapletree’s private funds, please email PCM_Enquiries@mapletree.com.sg 

<END> 

Footnotes:
¹ MCLIP’s initial portfolio of 43 assets comprises 19 completed assets and 24 development projects as at 15 December 2022. Upon completion of the development projects, the initial portfolio will have an NLA totalling 3 million sqm.