Mapletree to expand portfolio across logistics, student housing, and data centres

It remains cautious about the office market.

Temasek-owned Mapletree Investments has announced plans to expand its portfolio across three of its core sectors: logistics, student housing, and data centres.

The company reported strong operational performance in FY24/25, particularly in the logistics sector, where Mapletree Logistics Trust (MLT) maintained a high occupancy rate of 96.2% across 180 assets in Asia Pacific.

The sector is Mapletree’s largest asset class, making up 42% of its total AUM, or about $33.7b out of $80.3b as of 31 March.

In China, occupancy for logistics assets under the Mapletree China Logistics Investment Private Fund (MCLIP) rose to 80%, outperforming peers.

The company secured full occupancies for new developments in Australia and Vietnam and acquired land in Tsing Yi, Hong Kong SAR, and Tamil Nadu, India, to build modern logistics facilities.

It also launched new logistics parks in China, India, and Vietnam, and entered the UK and Spanish logistics markets with acquisitions worth over EUR350 million, bringing the European logistics portfolio to $2.2b. In the US, Mapletree acquired land in New Jersey and Illinois to support its logistics development strategy.

A new European logistics fund and a US logistics development fund are also in preparation. In student housing, Mapletree’s AUM stood at $5.3b, including assets managed under the Mapletree Global Student Accommodation Private Trust (MGSA), which is nearing maturity.

Additionally, the company continued to drive rental income and high occupancy across its nearly 29,000 student beds in the UK and US, while upgrading facilities and enhancing the student experience.

It received top honours at the 2024 Global Student Living Awards and completed a GBP1 billion strategic acquisition of 31 student housing assets in the UK and Germany, along with the Student Castle operating platform, positioning it as the fourth-largest student housing owner in the UK.

Mapletree is transitioning more assets onto its in-house platform and exploring entry into new student housing markets, including Australia and selected European countries.

A new UK-focused student housing fund with AUM of at least GBP500 million is planned for FY25/26. In the office sector, Mapletree saw strong demand in India and Vietnam, with its Tier-1 India office assets reaching 88% occupancy and rental reversions of ~38.5%.

The group is developing new office spaces in Bengaluru, Mumbai, Pune, and Hanoi, and its European office fund achieved a 91.4% occupancy.

In the US, enhancements at Galatyn Commons and 8 Pack improved leasing outcomes under the Mapletree US Income Commercial Trust (MUSIC).

The group also disposed of non-core office assets in Singapore, London, Tokyo, and other locations as part of capital recycling.

In the data centre segment, Mapletree created a dedicated business unit to oversee global growth and operations. Performance remained strong, with rental rates rising in the North American portfolio held by Mapletree Industrial Trust (MIT).

The Osaka Data Centre in Japan completed its final fit-out phase, and Mapletree acquired a freehold facility in Japan for redevelopment.

The first data centre project in Hong Kong SAR is progressing on schedule and is set to complete in the second half of 2025. Mapletree continues to seek new opportunities to grow its data centre presence globally.

Meanwhile, the company said it remains cautious about the office market in the short- to medium-term.