Mapletree closes second Japan logistics development fund, expects 110b yen AUM
MAPLETREE Japan Investment Country Private Trust (Majic) fund has had a successful close, riding the wave of a booming logistics sector in Japan.
Majic is expected to rack up more than 110 billion yen (S$951.1 million) in assets under management (AUM) after full deployment and all development projects are completed, said Mapletree Investments on Friday (May 17).
As Mapletree’s 16th private equity fund, Majic is the group’s second Japan logistics development fund and the third one focused on Japan.
Hiew Yoon Khong, Mapletree’s group chief executive, noted an overall resilience in Japan’s real estate sector and investor confidence in the country’s continued economic performance after emerging from decades of stagnation.
“Amid the uncertain economic climate, Japan remains a preferred investment destination in the Asia-pacific region,” said Hiew, adding that the previous two Japan funds both delivered internal rates of return above 20 per cent.
The fund is majority-seeded with three logistics development projects, comprising a forward purchase of a last-mile logistics property located next to Tokyo Bay, as well as land plots for development into facilities located in central Kyoto and Sanbongi in Miyagi prefecture.
The three assets are all located within or around major metropolitan areas, near logistics infrastructure such as cargo airports, ports, expressways or industrial zones, said Mapletree.
It added that the fund will continue to source quality logistics development projects for acquisition to fully deploy the capital raised.
“Demand for modern logistics facilities in Japan is expected to (drive) its outperformance, underpinned by the acceleration of e-commerce and thirdparty logistics, growth in advanced manufacturing activities and supportive regulatory changes,” said the group. It noted that Majic aims to deliver a strong development pipeline that meets the demand for modern logistics facilities in key Japanese cities.
Mapletree will maintain a minimum of 20 per cent stake in Majic, which will be managed by its subsidiary, Mapletree Real Estate Advisors.