Singapore-listed Mapletree Investments Pte Ltd has successfully raised $535 million for its Mapletree Global Student Accommodation Private Trust (MGSA P-Trust).
The Singapore-based trust focuses on the student accommodation market and currently holds around $1.3 billion in student housing assets, totalling 14,000 beds, across the UK and United States.
Around $243.25 million of equity was raised for the 5,910-bed UK portfolio and $291 million for the 8,363-bed US portfolio. The funding has a term of five years, with a provision for a one-year extension.
The Trust is managed by Mapletree Real Estate Advisors Ptd. Ltd, a wholly-owned subsidiary of Mapletree. The group company will retain a 35% stake in MGSA P-Trust, within the range of stakes it has taken in its other sponsored funds and trusts.
The largest investors include The Great Eastern Life Assurance Company Limited, as well as DBS Bank and UBS AG, who are investing in the Trust on behalf of their high net worth clients.
Commenting on the funding, Mapletree's Group CEO, Hiew Yoon Khong, said: "The successful close of MGSA P-Trust is testament to investors' confidence in Mapletree's track record of delivering the desired returns levels. Opting for the private track also allowed us to bring the product to market quickly, and is more cost effective to set up and operate on an ongoing basis, without the lengthy process to launch and IPO and the increasing compliance costs to maintain a REIT."
Hiew also indicated the company will continue to develop innovate real estate investment products and that investors into MGSA P-Trust will be able to achieve strong returns from an asset class proven to be relatively anti-cyclical.