Investment Activities & fund management

Mapletree’s capital Mapletree has built up a wealth of of over S$21 billion. In the last decade, management business experience in the real estate capital Mapletree has grown grown its management market. The Group is third-party assets under management focuses on the management currently managing or has managed (AUM) by more than six times. of public-listed real estate 14 capital management vehicles investment trusts (REITs) on behalf of many of the world’s As at 31 March 2019, Mapletree's and private real estate funds. top institutional investors including AUM stood at S$55.7 billion, of sovereign wealth funds, pension which 67.7% was managed assets. Through a wide array of funds, insurance companies and In line with our business objective investment platforms, the private investors. Our real estate to deliver consistent and high Group offers real estate portfolio offers investors exposure to returns, Mapletree constantly seeks both diversified and sector-focused opportunities to launch new capital investment opportunities portfolios across the public and management platforms and focuses across diversified asset private real estate markets. on building lasting relationships with classes to meet different its capital partners by leveraging its needs and risk profiles of The Group has built a strong strong pipeline and performance of reputation as an industry leader real estate assets. both institutional and in the REIT market and retail investors. private fund management business Achieving Successful Exit – with origination, structuring and MJOF fundraising capabilities. Currently, Mapletree manages four Singapore- MJOF was launched in 2014 at a listed REITs and six private funds with fund size of JPY65 billion (~S$791.3 combined funds under management million) with the objective of

FIVE-YEAR GROWTH IN THIRD-PARTY AUM & FUNDS UNDER MANAGEMENT

(S$ million) 37,747

36,000 31,051 28,111 30,000

22,972 24,000 20,562 21,839 19,043 17,880 18,000 15,258 15,569

12,000

6,000

0 FY14/15 FY15/16 FY16/17 FY17/18 FY18/19

Funds Under Management Third-Party AUM

92 MAPLETREE INVESTMENTS PTE LTD ANNUAL REPORT 2018/2019 To date, Mapletree owns and Successfully Syndicated a New Fund – Mapletree US & EU Logistics manages more than US$1.09 billion Private Trust (MUSEL) (~S$1.5 billion) of assets in . Following the successful launch of Mapletree Global Student Accommodation In November 2018, the Group Private Trust (MGSA) in 2017, the Group continued to expand its range of private expanded its portfolio in when funds in FY18/19 and syndicated a logistics private trust in the United States (US) it acquired SP Infocity Park and and Europe, MUSEL, with US$1.8 billion (~S$2.44 billion) in equity. Despite the renamed it as Global Infocity Park competitive fundraising environment, the private trust attracted strong investor Chennai. support from a diversified group of investors that include sovereign wealth funds, insurance companies, financial institutions and family offices. MUSEL aims to deliver The Group is constantly looking strong and sustainable income yield with an attractive total return by investing in out for opportunities to further high quality logistic assets in the US and Europe. MUSEL is invested in a portfolio extend its reach beyond Asia. In of 262 logistics properties with an aggregate leasable area of approximately 5.2 October 2018, the Group acquired million square metres (sqm) located across 26 states in the US and 20 European a 1.53 million sqm logistics portfolio cities across seven European countries. for US$1.1 billion (~S$1.49 billion) across both the US and Europe. In addition to MUSEL, Mapletree manages five other funds – a -focused The acquisition of this portfolio logistics development fund, MJLD, Mapletree Opportunity Fund II (MCOF further marked the Group’s deeper II), Mapletree India China Fund (MIC Fund), MGSA and CIMB-Mapletree Real Estate penetration into the US and European Fund 1 (CMREF1). markets following earlier acquisitions in the lodging sector, commercial properties as well as data centres investing in predominantly income- delivered solid returns to its investors across these two regions. generating office spaces in Japan. since their respective initial public With the end of its investment period offerings. This demonstrates the high Mapletree has become a global real in 2017, MJOF explored various quality of Mapletree’s REITs and their estate entity. The Group endeavours divestment options to maximise portfolios, as well as Mapletree as a to align the development of current value for its investors. In May 2018, committed and strong Sponsor. and new products with its investors’ MJOF divested six office assets to evolving investment requirements. Mapletree North Asia Commercial The Group’s four Singapore-listed Mapletree will continue to grow its Trust (MNACT)1 for JPY63,304 million REITs, namely Mapletree Logistics capital management business by (~S$770.6 million). Three of the Trust, Mapletree Industrial Trust, bringing new private funds and REITs four remaining office assets were Mapletree Commercial Trust to market. subsequently divested to domestic and MNACT, performed strongly, parties in October 2018 and the last achieving an annual distribution yield asset, together with its underlying per unit of between 4.8% and 5.8% in holding structure, was divested in FY18/19. March 2019. With the full realisation of the fund, MJOF achieved a 1.88 Broadening Our Global times multiple and net internal rate of Presence return (IRR) of 27.1%2, attesting to the Group's ability to deliver high returns During the year, Mapletree continued to its investors. to expand globally in terms of its investment footprint and client Delivering Stable Returns coverage. The Group continued to Backed By A Strong Sponsor broaden its presence by successfully making acquisitions in the US, Mapletree continues to syndicate Europe, India and Vietnam. new private funds to meet investors’ needs, as well as deliver strong and In Vietnam, the Group opened its sustainable returns to investors via first serviced apartment development, its listed platforms. Strengthening Oakwood Residence Saigon, and the Group’s capital management unveiled the design of its new Grade capability is an important strategy A office twin towers, V Plaza, in to achieve its optimal capital March 2019. V Plaza is expected to structure. The Group’s four REITs be completed in 2023 as the largest have performed well, having reported office complex in District 7 of credible earnings and consistently Ho Chi Minh City.

INVESTMENT ACTIVITIES & FUND MANAGEMENT 93 Investment Activities & fund management

Name of Fund/ Brief Launch/ Investment Investment Fund Life Fund Size/ REIT Description Listing Universe Focus (Years) NAV3 Date Private Funds – Existing Mapletree US Established with the 2019 The US and Logistics 7 US$1.8 & EU Logistics objective to invest in high Europe billion Private Trust quality and strategically (~S$2.44 (MUSEL) located logistics assets in billion) the US and Europe. Mapletree Established with the 2017 The UK and Student 5 US$535 Global Student objective to invest in an the US Accommodation million Accommodation attractive and resilient (~S$725.5 Private Trust income-producing student million) (MGSA) accommodation portfolio in the UK and the US. MJLD Established with the objective 2014 Japan Logistics 5 JPY51 of generating attractive billion total returns by investing in (~S$620.8 logistics development assets million) in Japan. Mapletree China Established with the 2013 China Commercial, 9 US$1,400 Opportunity Fund objective of maximising Industrial, million II (MCOF II) total returns by investing in Residential and (~S$1,898.5 a portfolio of development Mixed-Use million) projects and projects with value enhancement potential located in Tier 1 and Tier 2 cities in China. Mapletree India Established with the objective 2008 China and Commercial 11 US$1,158 China Fund of maximising total returns India and Mixed-Use million (MIC Fund) by acquiring, developing and (~S$1,570.4 realising real estate projects in million) China and India. CIMB-Mapletree Established to make direct 2005 Commercial and 14 MYR402 Real Estate Fund investments in development Residential million 1 (CMREF1) and/or investment assets, (~S$133.5 real estate investment million) products and listed real estate securities in Malaysia. Private Funds – Fully realised MJOF Established with the objective 2014 Japan Office Space Realised JPY65 of generating a stable and billion recurring income yield with (~S$791.3 an attractive total return, by million) investing predominantly in income-generating office spaces located primarily on or around the fringe of Tokyo CBD and within the Greater Tokyo area. Fully realised and achieved 1.88x multiple and net IRR of 27.1%2.

94 MAPLETREE INVESTMENTS PTE LTD ANNUAL REPORT 2018/2019 Name of Fund/ Brief Launch/ Investment Investment Fund Life Fund Size/ REIT Description Listing Universe Focus (Years) NAV3 Date Private Funds – Fully realised Mapletree Established with the 2006 Pan Asia Industrial Realised US$299 Industrial Fund objective of investing in million (MIF) industrial properties in Asia (~S$405.5 for yield and appreciation. million) Fully realised and achieved 1.5x multiple and net IRR4 of 15.1%. Mapletree Held S$1.71 billion of 2008 Singapore Industrial Realised S$708 Industrial Trust – industrial assets acquired million Private (MITP) from JTC in 2008. Fully realised and achieved 1.5x multiple and net IRR4 of 19.1%. Mapletree Real Focused on originating 2005 Pan Asia All Realised S$90 Estate Mezzanine and executing real estate million Fund (MREM) mezzanine loans in Asia. Fully realised in FY07/08 and achieved 1.2x multiple and net IRR4 of 25.3%. Public Listed – REITs Mapletree North REIT investing in a diversified 2013 Greater Commercial – S$4,585 Asia Commercial portfolio of income-producing China and million Trust (MNACT) commercial real estate in Japan Greater China5 and Japan. Mapletree REIT investing on a long- 2011 Singapore Commercial – S$4,616 Commercial Trust term basis in a diversified million (MCT) portfolio of office and retail properties in Singapore. Mapletree REIT investing in a diversified 2010 Singapore Industrial – S$3,048 Industrial Trust portfolio of income- million (MIT) producing properties used for industrial purposes in Singapore and the US. Mapletree First Asia-focused logistics 2005 Pan Asia Logistics – S$4,232 Logistics Trust REIT in Singapore, with the million (MLT) principal strategy of investing in a diversified portfolio of income-producing logistics real estate and real estate related assets in Asia-Pacific.

1 Formerly known as Mapletree Greater China Commercial Trust (MGCCT). Please refer to MNACT’s SGX-ST Announcement dated 25 May 2018 titled “Change of Name of Mapletree Greater China Commercial Trust and the Manager”. 2 After expenses, taxes and base fee but before carried interest. Returns subject to post-closing reconciliation adjustments in July 2019. 3 Total fund size for private funds; NAV attributable to unitholders for listed REITs as at 31 March 2019. 4 After expenses, taxes and base fee but before carried interest. 5 MNACT's Greater China investment mandate includes 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). MNACT’s overall investment mandate has been expanded to include Japan with effect from February 2018.

INVESTMENT ACTIVITIES & FUND MANAGEMENT 95