Mapletree Closes $1.4B China Real Estate Fund

Asian real estate investment firm Mapletree Investments Pte Ltd. says it has reached final closing of its private real estate fund, Mapletree China Opportunity Fund II, at its hard cap or maximum target of US$1.4 billion, above the initial target of US$1.0 billion.

Mapletree China Opportunity Fund II was closed within 10 months after its marketing launch in October 2012, and just two months after its first closing at the end of June 2013 for US$1.1 billion.

"Mapletree has been investing in China since 2005," says Mapletree chief executive officer, Hiew Yoon Khong. "We believe in aligning our own capital commitment significantly with our co-investors. So for this fund, we have committed 36% of the Fund’s total capital”.

Mapletree China Opportunity Fund II is the second China-focused fund sponsored by Mapletree, and a follow-on investment vehicle to its US$1.2 billion Mapletree India China Fund.

The fund will invest in the development of integrated mixed-use or single-use projects as well as investing in projects with value potential located in China’s Tier I and Tier II cities. The Fund’s primary target asset classes include office, business park, retail, industrial, serviced apartment and residential projects.

MCOF II is seeded by two substantial assets that represent approximately 15% of the Fund. Both assets are currently under construction, with one located in Minhang District, Shanghai Shanghai and the other in Foshan.

Greater China is Singapore-based Mapletree’s largest overseas market with total assets under management of 6.86 billion Singapore dollars ($5.37 billion) as of 31 March, 2013.

"China is an important market for Mapletree to scale up given its continued economic growth and urbanization," says Mapletree’s regional CEO for China and India, Quek Kwang Meng. "With increased decentralization as well as the growing affluence and consumer spending by a large middle class, there is increased demand for well-located, well-designed and well-managed real estate."

Mapletree is the real-estate arm of Singapore’s Temasek Holdings. It has US$17 billion under management and has an average return of invested equity 16%, according to its website.

Caishen.Co - Primary Data for China Secondary Investment and Stock Markets