Mapletree Investments has launched its first China logistics fund, managing approximately 1.5 billion yuan (US$221.6 million) in assets under management (AUM). The fund, in partnership with China Life Capital, aims to generate stable recurring income and long-term value through proactive asset management, according to a statement from the company on July 28.
Key Details
The fund's portfolio includes five stabilised logistics assets located in Nanjing, Wuxi, and Chengdu, covering a total leasable area of about 382,000 square metres with an average occupancy rate of 95%. The properties are leased to third-party logistics providers, e-commerce operators, and advanced manufacturing companies, with some tenants having occupied the facilities for nearly a decade.
As part of its capital recycling strategy, Mapletree Logistics Trust (MLT) proposed on July 22 to divest two warehouses in Wuxi to the new fund for a combined 724 million yuan. Goh Chye Boon, regional chief executive officer of Mapletree China, expressed optimism about the improving investment environment in China’s real estate sector and the growing momentum in logistics park transactions. He noted,
Going forward, we will continue to explore onshore syndication and recycling opportunities to optimise our portfolio and unlock value for investors.
Background
The launch of this fund aligns with Mapletree's broader strategy of exploring additional capital recycling avenues, including potential listings of China real estate investment trusts (C-Reits) and alternative structures such as private Reits.
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The establishment of this logistics fund could influence the real estate investment landscape in China, particularly in logistics and e-commerce sectors, as it signals increased institutional interest in these areas. Investors will watch for further developments regarding potential C-Reit listings as a sign of market confidence and growth in the sector.