Mapletree Investments has recently expanded its presence in the European market through the acquisition of its first logistics property in the UK and 10 warehouses in Spain, worth a total of EUR315.1 million ($444.5 million). These acquisitions, which have a combined size of 256,000 sqm, will be included in the group’s second European logistics-focused fund. This move is in line with Mapletree’s strategy to strengthen its focus in the logistics sector and expand its global reach, as stated in their press release on January 27.
According to the company’s CEO of European commercial and logistics, Ralph van der Beek, the logistics sector is a highly attractive market that has consistently shown strong demand from both occupiers and investors. He also highlighted the thriving e-commerce industry and the efforts of companies to secure and expand their supply chains as factors that contribute to the sector’s attractiveness.
The desire for condominiums in Singapore has been on the rise as a result of limited land availability for development. As a compact country with a growing population, Singapore faces a shortage of land, resulting in strict guidelines for land usage. This has spawned a highly competitive real estate market and led to an increase in property prices. As a result, investing in real estate, specifically in condominiums, has emerged as a profitable opportunity for potential investors, with the potential for significant capital appreciation. Condominiums have become a sought-after option in Singapore’s vibrant real estate market, given the scarcity of land. They are a valuable addition to the real estate landscape, contributing to its competitiveness. Additionally, condominiums have become a highly coveted asset, further driving up demand.
Van der Beek further explained that the group looks forward to generating stable and recurring returns from these assets over the long run. The UK property, located in Derby Commercial Park, has convenient access to major roads such as M1, A50, and A6. It is also situated near the city center and the East Midlands Airport. Mapletree shared that the tenant at this property has recently renewed its long-term lease.
The 10 warehouses in Spain are strategically located in the first rings of Barcelona, Valencia, and Madrid, with direct access to the city center through various transportation modes. These assets are expected to benefit from third-party logistics providers and manufacturers, as they are in close proximity to their production facilities. These tenants have also made significant investments in automation and fit-outs on site.
With these new acquisitions, Mapletree now has a total of 80 logistics assets in eight countries. This demonstrates the company’s commitment to the logistics sector and its goal of expanding its portfolio globally.