Mapletree full-year earnings dip 3%

Mapletree full-year earnings dip 3%

But operating profit rises 35%; revenue jumps 69% to $365.6m

 

MAPLETREE Investments posted a 3 per cent dip in net earnings for the year ended March 31, 2008 to $1.04 billion because of lower net revaluation gain and higher net finance cost.

 

Operating profit, however, rose 35 per cent to $146.9 million on the back of first full-year contributions from VivoCity and St James Power Station (SJPS) and maiden contribution from The Beacon, a residential project at Cantonment Road.

 

The fully owned subsidiary of Temasek Holdings also achieved much higher occupancy and rental rates from all its investment properties across the board.

 

Revenue jumped 69 per cent to $365.6 million with VivoCity and SJPS contributing a total $99.5 million and The Beacon contributing $47.5 million.

 

The Temasek unit booked a net revaluation gain of $879 million (after deferred tax provision) for the latest financial year, lower than the $971.2 million in the preceding year.

 

Mapletree chairman Edmund Cheng said the group is exploring several mixed-use commercial projects in Vietnam (in Ho Chi Minh City, Hanoi and the provinces abutting them). ‘In line with our business model, we will seed these projects with our own balance sheet, and will consider the possibility of starting a Vietnam-focused fund once we have achieved a significant asset size,’ he said in his message in Mapletree’s latest annual report.

 

Elsewhere in the report, the group revealed it is ‘in the advanced stage of evaluating several projects comprising a wide spectrum of property types, from office, retail, residential, to industrial and service residential properties, with a view to seed a new Vietnam fund with these assets over the next few months’.

 

When asked, Mapletree’s spokeswoman said the Vietnam fund will be started within the next 12 months but this will depend on market conditions in Vietnam. The fund size will be at least US$500 million.

 

Mapletree’s real estate assets, both owned and managed, stood at $8.9 billion as at March 31, 2008, up 59 per cent from $5.6 billion a year earlier. Of these, its third-party assets under management (AUM) amounted to $3.1 billion, an increase of 94 per cent, while the group’s owned assets grew nearly 45 per cent from $4 billion to $5.7 billion.

 

Fee income, excluding fee income from associates, grew 40 per cent last year. The group’s AUM and fee income will be boosted significantly in the current financial year from the Mapletree India-China Fund launched in April this year and a new Mapletree-Arcapita Bank fund formed to hold the $1.7 billion portfolio of properties acquired from JTC Corp.

 

In an interview with BT in April this year, Mapletree CEO Hiew Yoon Khong projected the group’s total assets could hit $15 billion to $20 billion in a year.

 

The India-China fund has secured a US$600 million commitment at the initial closing and is currently marketing its second closing with a target to secure a total commitment of US$1.5 billion.

 

In Singapore, the group is developing Mapletree Business City, an office and business park with 1.7 million sq ft of total net lettable area and slated for completion in second-half 2010.

 

It is also developing a 19-storey Grade A office building at Anson Road called Mapletree Anson, which is expected to be ready in mid-2009. These two assets could be potentially sold at some point to the proposed Mapletree Commercial Trust.

 

This trust was to have been listed here earlier this year holding about $3 billion of the group’s assets in the HarbourFront and Alexandra Precincts with VivoCity as the anchor asset. However, the launch has been deferred due to unfavourable stock market conditions.

 

Source: Business Times

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Mapletree planning $682m fund in Vietnam

Mapletree planning $682m fund in Vietnam

 

REAL estate firm Mapletree Investments is setting up a US$500 million (S$682 million) fund to invest in properties in fast-growing Vietnam, to be launched within 12 months.

The Temasek Holdings unit said it is setting up the fund to ‘harness Vietnam’s rising development cycle, and to tap into the growing affluence of the middle-class segment of its population’.

 

Mapletree unveiled its plans for the fund in its recently published annual report.

 

It is ‘currently in the advanced stages of evaluating several projects comprising a wide spectrum of property types, from office, retail and residential to industrial and service residential properties, with a view to seed a new Vietnam fund with these assets over the next few months’.

 

Mapletree spokesman Shae Hung Yee said the company plans to launch the fund, which will be at least US$500 million in size, within the next 12 months.

 

This timeline, however, may be altered depending on ‘market conditions’, she said. ‘We will make sure the time is right before starting any fund,’ she added.

 

Mapletree’s fund will include its own seed money, said Ms Shae, who added that the firm is considering ‘syndicating the fund’ out to like-minded investors with aligned interests.

 

The move is part of Mapletree’s efforts to tap into the high growth potential of emerging markets such as China, India and Vietnam, said chairman Edmund Cheng in the company’s annual report.

 

Mapletree posted a net profit of $1.04 billion for the financial year ended March 31, down 3 per cent from the year before.

 

On Tuesday, it announced that it had completed a $1.71 billion acquisition of industrial landlord JTC Corporation’s assets in Singapore.

 

The JTC properties, comprising 39 multi-storey factories and 23 offices and warehouses, had originally been slated for a real estate investment trust. Plans to list the trust were subsequently scrapped due to poor market conditions.

 

Mapletree owns and manages $5.7 billion worth of real estate assets in Singapore, including the VivoCity mall and St James Power Station. It manages about $4.8 billion worth of assets in the region. The latter figure includes the recent JTC acquisition.

 

Source: Straits Times

Mapletree, Arcapita in real estate JV

Mapletree, Arcapita in real estate JV

Fund to hold $1.7b portfolio of industrial properties

 

MAPLETREE Investments has entered a joint venture with Arcapita Bank to form a private real estate fund called Mapletree Industrial Trust (MIT). The fund will hold the $1.71 billion portfolio of high-rise, ready-built industrial properties acquired from JTC Corporation.

 

Mapletree will hold a 25.1 per cent stake in MIT, while Arcapita will hold 56.5 per cent. Mapletree Industrial Fund, a pan-Asian private real estate industrial fund sponsored by Mapletree, will own the rest.

 

‘We will explore the possibility of listing this portfolio as a Reit in due course, possibly in combination with other Mapletree industrial assets,’ Mapletree’s CEO Hiew Yoon Khong said yesterday.

 

MIT took official control of the industrial properties yesterday. The portfolio comprises 39 blocks of flatted factories, 12 amenity centres, six stack-up buildings, one ramp-up building, three multi-tenanted business park buildings and one warehouse building. Mapletree’s wholly owned subsidiary Mapletree Industrial Fund Management will manage the properties.

 

Mr Hiew said Arcapita’s involvement as a joint-venture partner in MIT supports ‘our view that this is a high quality portfolio of real estate’.

 

Headquartered in Bahrain, Arcapita provides syariah-compliant alternative investments and counts high net worth individuals and institutions among its investors. The bank opened its Singapore office in January.

 

‘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,’ Mapletree and Arcapita said in a joint statement yesterday.

 

The partnership marks Arcapita’s first major investment in South-east Asia and its first venture with Mapletree. ‘The acquisition of this JTC portfolio, given its scale and quality, is an excellent start for Arcapita’s Singapore office as we seek to increase our investments and presence across Asia,’ said Arcapita CEO Atif Abdulmalik.

 

Source: Business Times