Temasek-backed Mapletree Raises $443m For New Australian Private Trust

Singapore-based real estate asset manager Mapletree Investment has closed its Australian private commercial trust, Mascot Private Trust (MASCOT), after raising A$654 million in equity.

The trust secured the backing of institutional, corporate, and high-net-worth investors, the firm, which is owned by Singapore’s state investor Temasek Holdings Pte, said.

MASCOT is fully invested at closing and owns 10 Grade A office assets located in key Australian cities of Sydney, Melbourne, Adelaide, Brisbane, and Perth. The portfolio has a total asset value of about A$1.4 billion ($947 million).

The office assets have a total net lettable area of approximately 160,000 square meters with an occupancy rate of 94 per cent. The tenant pool comprises companies from various industries such as technology, media and telecom, government, among others.

Mapletree will retain a 27 per cent stake in the trust, which will be managed by its wholly-owned subsidiary Mapletree Real Estate Advisors. The fund, which has a term of five years with provision for two one-year extensions, targets a 12-per cent internal rate of return.

The closing of the private trust followed a series of other European and US funds in the logistics and student accommodation sectors Mapletree has syndicated over the last 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,” said Mapletree’s Group CEO Hiew Yoon Khong.

Mapletree entered Australia in 2014, attracted by the market’s strong property and economic fundamentals. Hiew said the limited supply of Grade A office assets in Australia is expected to boost rents 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,” Hiew added.

Mapletree owns and manages S$55.7 billion ($37 billion) of office, retail, logistics, industrial, residential, and lodging facilities through its four Singapore-listed REITs and six private equity real estate funds that hold assets in Asia, Europe, the UK, and the US.

In an interview with Bloomberg in June, Hiew said the firm aims to increase assets managed to S$90 billion ($61 billion) within the next five years and may strike up to S$10 billion of deals annually by buying and selling properties.