Arcapita announces acquisition of US$1.3 billion Singapore real estate portfolio

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Arcapita Bank B.S.C.(c), a leading international investment firm headquartered in Bahrain, and Mapletree Investments Pte Ltd, a leading Singapore based real estate company, have announced the completion of agreements to become joint venture partners in Mapletree Industrial Trust (“MIT”), a private real estate fund which holds a US$1.3 billion portfolio of high-rise, ready-built industrial properties in Singapore.  Arcapita will hold a 56.5% stake in MIT, while Mapletree will hold a 25.1% stake.  The balance will be held by Mapletree Industrial Fund (“MIF”), a pan-Asian private real estate industrial fund sponsored by Mapletree.

The portfolio comprises a wide range of differing industrial properties, including 39 blocks of flatted factories, 12 amenity centers, six stack-up and one ramp-up buildings, three multi-tenanted business park buildings and one warehouse building.   The properties in the portfolio are attractive and well-diversified in terms of tenancy, location and asset type, and are well placed to continue to perform strongly.  The Singapore real estate market benefits from its established position as a hub in the rapidly growing region of South-East Asia.

Atif A. Abdulmalik, Chief Executive Officer of Arcapita, said “We are very pleased to be announcing our first transaction in Singapore, where we opened an office earlier this year.  Mapletree, our joint venture partner in the transaction, is one of Singapore’s most prominent real estate companies and is well placed to oversee the management of the portfolio.  We believe that this collection of properties represents a high quality investment opportunity for our investors, who continue show strong interest in the high growth markets of Asia.”

Mr Hiew Yoon Khong, CEO of Mapletree said, “We are pleased to have Arcapita as our joint venture partner in MIT, which demonstrates support for our view that this is a high quality portfolio of real estate.  We will explore the possibility of listing this portfolio as a REIT in due course, possibly in combination with other Mapletree industrial assets.”