Mappletree Boosts Capital Management Portfolio with New A$654M Trust

3 December 2019

Mapletree Investments announced this week the successful closing of a new private trust, MASCOT Private Trust at approximately A$654 million in total fund equity.


MASCOT is fully invested at closing and owns 10 Grade A office assets in key Australian gateway cities namely – Sydney, Melbourne, Adelaide, Brisbane and Perth – with a total asset value of about A$1.4 billion. 


The Trust will be managed by Mapletree Real Estate Advisors Pte. Ltd., a wholly-owned subsidiary of Mapletree. Mapletree will retain a 27% stake in MASCOT to align with investor interest; akin to its approach with other sponsored private funds such as Mapletree Global Student Accommodation Private Trust (MGSA), Mapletree US & EU Logistics Private Trust (MUSEL) etc., and its four Singapore-listed real estate investment trusts (REITs).


Mr Hiew Yoon Khong, Mapletree’s Group Chief Executive Officer, said “The successful closing of MASCOT is a testament to the strong confidence that investors have in Mapletree’s fund management and real estate capabilities.


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


MASCOT,  which has a term of five years with provision for two, one-year extensions, attracted a range of institutional investors including pension funds, insurance companies, regional banks and corporates as well as high net worth and family office investors.


With a total net lettable area of approximately 160,000 square metres, the portfolio’s occupancy stands at 94%. The tenant pool comprises reputable occupiers from well-diversified industries such as the technology, media and telecom, government as well as mining, oil and gas.


As one of the strongest growing developed economies, Australia has strong economic growth, a buoyant labour market and a highly transparent regulatory system. Mr Hiew added, “The strong property and economic fundamentals are what attracted Mapletree’s entry into Australia in 2014. 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.”


MASCOT’s total return target of 12% represents both a yield plus growth opportunity from a strong, fully invested and income generating portfolio. The Trust will make distributions on a semi-annual basis in AUD. The closing of MASCOT follows a series of other European and United States funds in the logistics and student accommodation sectors Mapletree has syndicated over the last two years.