The acquisition marks the foundation of the company’s second European logistics fund.

Mapletree Investments, a prominent real estate firm, has acquired its first logistics property in the UK and a collection of 10 warehouses in Spain for a total of approximately 315.1 million euros (S$444.5 million). These newly acquired properties, which collectively offer a net lettable area of around 256,000 square metres, will serve as the seed assets for Mapletree’s second European logistics-focused fund.

The group announced on January 27 that the fund would be launched once it achieves sufficient scale. Ralph van der Beek, Mapletree’s Chief Executive for commercial and logistics in Europe, highlighted the appeal of the logistics sector, noting the strong demand from both occupiers and investors, particularly driven by the growing e-commerce industry seeking to secure and expand its supply chains.

The logistics hub in the UK is situated in Derby Commercial Park, close to the city centre and East Midlands Airport. The tenant of this asset has recently renewed its long-term lease.

In Spain, the newly acquired logistics assets are spread across key locations in Barcelona, Valencia, and Madrid. These sites are strategically positioned in core logistics hubs, providing easy access to city centres and making them ideal for last-mile activities. Mapletree pointed out that demand for such spaces is being driven by a shortage of modern logistics facilities in these areas.

These properties benefit from a strong tenant base of leading third-party logistics providers and manufacturers, who are committed to the sites due to their proximity to production facilities and ongoing investments in automation and site improvements.

Looking ahead, Mapletree aims to enhance its development capabilities on the ground and continue acquiring prime logistics assets across Europe and the UK. The group, which also owns and manages a diverse portfolio of office, mixed-use, and student housing properties in these markets, has a total asset value of over 4.3 billion euros as of March 31, 2024.

Since entering the European logistics market in 2018, Mapletree now holds 80 assets across eight countries, with 62 of these held under the Mapletree US and EU Logistics private trust, investing in a diversified portfolio across the Americas and Europe.