Mapletree Raises $500M for Asia Logistics Fund

Singapore's Mapletree Investments has secured more than $500 million in equity commitments for a new logistics development strategy. It targets $2.1 billion in assets across Malaysia, Vietnam, and India.

The total comprises $250 million raised for the Mapletree Emerging Growth Asia Logistics Private Trust (MEGA). Over $250 million came through a joint venture and direct co-investments into selected Malaysian projects. Sovereign wealth funds, a pension fund, and a national investment company are among the backers.

MEGA seeks a further $200 million at a second close targeted for early next year. The fund aims to deliver an internal rate of return in excess of the mid-teens. The firm cites growing domestic consumption, manufacturing activity, and supply-chain diversification as key demand drivers. It points to a structural undersupply of institutional-grade logistics space in these markets.

"MEGA's successful first close marks an important milestone," said group CEO Hiew Yoon Khong. He credited the firm's integrated capabilities with enabling accelerated deployment.

Initial Portfolio and Strategy

Mapletree began marketing MEGA in 2025. The newly unveiled structure pairs the fund with project-level capital. This creates the broader $2.1 billion strategy.

The fund's initial portfolio consists of seven seed assets. These include four development projects in Malaysia, one project in India, and two warehouses in Vietnam. The separate joint venture and direct co-investments will add selected Malaysian developments as capital is deployed.

"MEGA provides investors with access to logistics development opportunities in select high-growth markets across emerging Asia," said Ng Kiat, Mapletree’s CEO for Asia Pacific logistics development.

Logistics is the firm’s largest asset class. It accounts for 43 percent of group assets under management, or S$32.4 billion. As of March, the firm managed 22.8 million square metres of logistics space across 12 markets. Its sponsored Mapletree Logistics Trust owned 175 properties across nine APAC markets. Occupancy was 96.9 percent.

MEGA is the group’s 18th private real estate fund. It is the third in a recent series of logistics development vehicles. The firm will manage the new fund and retain a stake of at least 20 percent. This aligns its interests with investors.

Capital Recycling from Mature Assets

The new fundraising coincides with Mapletree recycling capital from mature assets elsewhere. This includes five major US logistics disposals. They were completed between June 2025 and April of this year.

The latest US sale was a $207.5 million transaction. It involved 19 properties spanning nearly 1.4 million square feet. The buyer was last-mile specialist Dalfen Industrial. These disposals represent the first exits from a 2019-vintage fund. They lifted the group's US warehouse sales over the ten-month period to $1.3 billion. The firm has concurrently acquired four US development sites. They support up to 1.4 million square feet of new logistics space.

Separately, sponsored Mapletree Industrial Trust recently put 22 US data centres on the market. The SGX-listed REIT is pursuing up to $472 million in North American divestments. This portfolio spans 15 states and more than 3.1 million square feet. Its aggregate appraised value was $1.24 billion as of March.

The REIT's manager plans to direct more capital towards long-term leases. These are with cloud and hyperscale operators in core Asian and European markets. Sale proceeds are available to reduce debt. They are pending redeployment.

Strategic Portfolio Rotation

Mapletree is also winding down its MASCOT Australian commercial fund. This follows a series of loss-making office exits. Its $1.3 billion MGSA student housing vehicle is being liquidated. It posted a 1.1 percent net IRR against a 12 percent target.

These moves are significant. They show the group's strategic rotation. It is moving from mature and underperforming holdings into development-led strategies like MEGA.