Mapletree Investments Buy First Logistics Property in UK

As part of its European push, Singapore-based global real estate firm Mapletree Investments on Monday announced that it has acquired its first logistics property in the UK and a portfolio of 10 logistics assets in Spain for an approximate total value of $330 million.

The newly acquired logistics hub in Derby Commercial Park in the UK enjoys excellent access to major arterial roads including the M1, A50 and A6, and is situated near the city centre and the East Midlands Airport. The tenant at the asset recently renewed their long-term lease, underscoring the site’s critical role in their business.

Ralph van der Beek, CEO, Commercial and Logistics, Europe, Mapletree, said that logistics remains a highly attractive sector that has consistently enjoyed strong demand from occupiers as well as investors.

He further said that e-commerce continues to thrive and companies are making efforts to secure and expand their supply chains and they were excited to expand the company’s footprint into the UK as well as in Europe, and look forward to these institutional quality assets delivering stable and recurring returns over the long run.

Mapletree’s Portfolio in Spain

Concentrated across the first rings of Barcelona, Valencia and Madrid, the well-diversified portfolio of logistics assets in Spain is situated in core logistics hubs offering immediate access to the city centre via various transportation modes, making them ideal for hosting last-mile activities.

Demand for space is fuelled by the undersupply of modern logistics stock in the neighbouring areas. These assets benefit from the strong tenant base of leading third-party logistics providers and manufacturers which are highly committed to the properties due to proximity to their production facilities and investments dedicated to automation and fit-outs on site.

As part of Mapletree’s long-term commitment to integrate sustainability into its investment and operational decisions, the newly acquired logistics assets totalling a net lettable area of approximately 256,000 sq. m. are equipped with industry-recognised sustainability credentials.

European Assets

Since entering the European logistics market in 2018, the Group has now 80 assets across eight countries. Among these assets, 62 are held under MUSEL, which has been delivering strong performance since its inception in 2019.

MUSEL is invested in a diversified pan American and pan European portfolio with strategically located, quality logistics properties. Aligned with Mapletree’s growth strategy of leveraging its private funds platform to expand its reach into core markets of strategic focus, the Group is syndicating a second European logistics-focused fund which will be launched at an appropriate time after achieving sufficient scale.

The Group’s near-term focus in Europe and the UK would be to expand and fortify its onshore development capabilities and acquire well-positioned assets in its commitment to delivering high-quality logistics solutions.

In addition to logistics, the Group owns and manages office, mixed-use and student housing properties in these two markets, totalling over $4.5 billion in assets under management as at 31 March 2024. 

Mapletree Group manages three Singapore-listed real estate investment trusts (REITs) and nine private equity real estate funds, which hold a diverse portfolio of assets in Asia Pacific, Europe, the UK, and the US.

As at 31 March 2024, Mapletree owns and manages S$77.5 billion of office, retail, logistics, industrial, data centre, residential and student accommodation properties located across 13 markets globally including Singapore, Australia, Canada, China, Europe, Hong Kong SAR, India, Japan, Malaysia, South Korea, the UK, the US and Vietnam.