Investment Activities & Fund Management

Mapletree’s capital management Mapletree has built a wealth of experience Mapletree manages four Singapore-listed business focuses on the management in the real estate capital management REITs and five private funds with combined of public-listed real estate investment market. To date, the Group has funds under management of S$15.6 billion. trusts (REITs) and private real estate established 12 capital management Mapletree’s assets under management funds. Through a wide array of investment vehicles on behalf of many of the world’s (AUM) has grown by about 10 times in platforms, the Group offers real estate top institutional investors, including a decade. investment opportunities across sovereign wealth funds, pension funds, diversified asset classes to meet the insurance companies and private As at 31 March 2016, Mapletree had different needs and risk profiles of both investors. Our real estate portfolio offers AUM of S$34.7 billion, of which 66.1% institutional and retail investors. investors exposure to both diversified are third-party assets. In line with our and sector-focused portfolios across the business objective to deliver consistent public and private real estate markets. and high returns, Mapletree seeks opportunities to launch new capital The Group has built a strong reputation management platforms and focuses on as an industry leader in the Singapore REIT building lasting relationships with its market and private funds management capital partners by leveraging its strong business with origination, structuring pipeline and pushing the performance and fundraising capabilities. Currently, levels of its real estate assets.

Five-Year Growth in Third-Party AUM & Funds Under Management

Funds Under Management Third-Party AUM

(S$ million) 25,000 22,972

20,562 20,000 18,224 16,744 15,258 15,569 15,000

12,667 11,401 10,121 10,000

7,138

5,000

0 FY11/12 FY12/13 FY13/14 FY14/15 FY15/16

60 Mapletree Investments Pte Ltd Active Acquisitions by Mapletree’s REITs and their portfolios, Achieving Mapletree’s Private Funds as well as Mapletree’s strengths as a Successful Exits committed and strong sponsor. Mapletree The private real estate funds managed by Industrial Fund Mapletree have been actively acquiring The Group’s four Singapore-listed REITs, and deploying commitments. Mapletree Greater China Commercial Trust Mapletree Industrial Fund (MIF) was (MGCCT), Mapletree Commercial Trust launched in 2006 at a fund size of In March 2016, MJOF, a Japan-focused (MCT), Mapletree Industrial Trust (MIT) US$299 million with the objective of office private fund, acquired two office and Mapletree Logistics Trust (MLT), investing in industrial properties in buildings located in the business district performed strongly in FY15/16. MGCCT, Asia. The Group has been actively of Makuhari in Chiba City at a total MCT, MIT and MLT respectively delivered looking for suitable opportunities to investment value of JPY43.2 billion. distribution per unit of 7.25 cents, divest MIF’s property assets, with 8.13 cents, 11.15 cents and 7.38 cents. the remaining asset successfully The acquisitions are in line with divested in the later part of 2015. MJOF’s fund objective of investing in With the full realisation of the fund, high quality, income-producing office Broadening Our Global MIF has achieved a 1.5 times space with stable income profiles and Presence multiple and net internal rate of strong tenant covenants. return of 15.1%, attesting to the During the year, Mapletree’s business ability of the Group to deliver high To date, MJOF has invested in nine model grew globally in terms of its returns to its investors. office buildings. The fund will continue investment footprint and client coverage. to seek investment opportunities in good The Group continued to broaden its quality office properties located primarily presence by successfully making in or around the fringe of the Tokyo acquisitions in Australia, the United central business district, and the Kingdom, the United States (US) and Greater Tokyo area. Germany, and made new ventures into student accommodation and corporate In addition to MJOF, Mapletree manages lodging/serviced apartments, the latter four other funds – Japan-focused logistics through a strategic partnership with development fund MJLD, Mapletree US-based Oakwood Worldwide. In Asia China Opportunity Fund II (MCOF II), Pacific, the Group is pursuing opportunities Mapletree India China Fund (MIC Fund) to acquire serviced apartments in markets and CIMB-Mapletree Real Estate such as Australia, Japan and Vietnam. To Fund 1 (CMREF1). date, Mapletree has made S$1.1 billion in corporate lodging/serviced apartment commitments. In Europe, Mapletree is Delivering Strong looking to extend its reach into other and Stable Returns stable European cities by acquiring high quality and decentralised office, student As Mapletree continues to syndicate accommodation, corporate lodging/ new private funds to meet investors’ serviced apartment, and logistics assets. needs, it is mindful to deliver strong and sustainable returns to investors, including The Group endeavours to align the through its listed platforms. The Group’s development of current and new products four REITs have performed strongly, having with its investors’ evolving investment reported credible earnings and consistently requirements. Mapletree will continue to delivered strong returns to investors since grow its capital management business their respective initial public offerings. by bringing new private funds and REITs This demonstrates the high quality of to market.

Annual Report 2015/2016 61 Investment Activities & Fund Management

Name of Brief Description Launch/ Investment Investment Fund Fund Size / Fund / REIT Listing Universe Focus Life NAV1 Date (Years)

Private MJOF Established with the objective of 2014 Japan Office Space 4 JPY65 billion Funds – generating a stable and recurring Existing income yield with an attractive total return, by investing predominantly in income-generating office spaces located primarily in or around the fringe of Tokyo CBD and within the Greater Tokyo area.

MJLD Established with the objective of 2014 Japan Logistics 5 JPY51 billion generating attractive total returns by investing in logistics development assets in Japan.

Mapletree Established with the objective of 2013 China Commercial, 9 US$1,400 China maximising total returns by investing Industrial, million Opportunity in a portfolio of development projects, Residential Fund II and projects with value enhancement & Mixed-use (MCOF II) potential located in Tier 1 and Tier 2 cities in China.

Mapletree Established with the objective of 2008 India & Commercial 10 US$1,158 India China maximising total returns by acquiring, China & Mixed-use million Fund developing and realising real estate (MIC Fund) projects in India and China.

CIMB- Established to make direct 2005 Malaysia Commercial 8 MYR402 Mapletree investments in development & Residential million Real Estate and/or investment assets, real estate Fund 1 investment products and listed real (CMREF1) estate securities in Malaysia.

Private Mapletree Established with the objective of 2006 Pan Asia Realised 7 US$299 Funds – Industrial investing in industrial properties in million Fully Fund Asia for yield and appreciation. realised (MIF) Fully realised and achieved 1.5 times multiple and net IRR2 of 15.1%.

62 Mapletree Investments Pte Ltd Name of Brief Description Launch/ Investment Investment Fund Fund Size / Fund / REIT Listing Universe Focus Life NAV1 Date (Years)

Mapletree Held S$1.71 billion of industrial 2008 Singapore Industrial Realised S$708 million Industrial assets acquired from JTC in 2008. Trust – Fully realised and achieved Private 1.5 times multiple and net IRR2 of (MITP) 19.1% against targeted 15.0%.

Mapletree Focused on originating and 2005 Pan Asia All Realised S$90 million Real Estate executing real estate mezzanine Mezzanine loans in Asia. Fund Fully realised in FY07/08 and achieved (MREM) 1.2 times multiple and net IRR2 of 25.3% against targeted 10.0%.

Public Mapletree REIT investing in a diversified 2013 Greater Commercial S$3,416 Listed – Greater China portfolio of income-producing China million REITs Commercial commercial real estate in Trust Greater China.3 (MGCCT)

Mapletree REIT investing in a diversified 2011 Singapore Commercial S$2,764 Commercial portfolio of office and retail properties million Trust (MCT) in Singapore on a long-term basis.

Mapletree REIT investing in a diversified 2010 Singapore Industrial S$2,465 Industrial portfolio of income-producing million Trust (MIT) properties used for industrial purposes in Singapore.

Mapletree First Asia-focused logistics REIT in 2005 Pan Asia Logistics S$2,528 Logistics Singapore, with the principal strategy million Trust (MLT) of investing in a diversified portfolio of income-producing logistics real estate and real estate related assets in Asia.

1 Total fund size for private funds; NAV attributable to unitholders for listed REITs as at 31 March 2016. 2 After expenses, taxes and base fee but before carried interest. 3 MGCCT’s investment mandate includes Hong Kong SAR, Tier 1 cities in China (Beijing, Guangzhou and Shenzhen) and key Tier 2 cities in China (Chengdu, Chongqing, Foshan, Hangzhou, Nanjing, Suzhou, Tianjin, Wuhan and Xi’an).

Annual Report 2015/2016 63