Singapore-based real estate investment company Mapletree Investments raised  €507mn ($600mn) for its first European office fund, according to its press release. The third-party fundraise was 1.5 times covered, with participation from new and repeat investors comprising pension funds, insurance companies, investment companies, asset managers and private banking clients.

The fund, known as Mapletree Europe Income Trust (MERIT), consists of seven Grade A office properties with a combined asset value of €1.2bn ($1.42bn). It has a target internal rate of return (IRR) of 12%, which Mapletree hopes to reach through yield and growth. The fund has a term of 5 years with provision to be extended by 1-year two times.

MERIT will be managed by Mapletree Real Estate Advisors Pte. Ltd., a wholly-owned subsidiary of Mapletree. In a similar move to other Mapletree-sponsored private funds, Mapletree will retain a 27% stake in MERIT to align with investor interest. MERIT will be Mapletree’s 4th fully seeded fund and 11th private equity fund.

Mapletree’s bonds remained largely unchanged – the Mapletree Commercial Trust SGD 3.05% 2029 was at 103.7, yielding 2.6%.
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