Mapletree Investments of Singapore said Wednesday that it planned to launch a new mutual fund targeted toward commercial property in China, according to a senior executive. Inception is planned within the next 1-2 years, with investments to total between $500 million-$1 billion in Singapore dollars ($401 million-$801 million).
Reuters reported that Chua Tiow Chye, group chief investment officer for Mapletree, said at a press conference that the fund will be backed by both internal and outside investor funds. The new China-focused fund will have between S$500 million and S$1 billion to invest in Chinese commercial property once it deploys most of the money in its existing funds, he added.
Chua said in the report, "The new China fund will be purely commercial-related so investors are quite clear what they are co-investing with us. Looking at our pipeline, for us to deploy S$500 million worth of equity over a period of 2-3 years should not be an issue."
Mapletree, which is owned by state investor Temasek, manages property funds, several of which are listed on the Singapore exchange. It made S$747 million net profit in the fiscal year ending in March, which is 90% higher than its 2009-2010 net profit of S$394 million. As of March 31, it owns or manages S$15.4 billion in assets, according to its annual report.