€507m raised in Mapletree's first European office fund

Mapletree Investments is set to expand in seven locations in European Union and United Kingdom.

The Mapletree Europe Income Trust (MERIT) office fund has closed after raising €507m ($816m), Mapletree Investments announced.

The funds will be used to invest in seven grade A office assets in Manchester, Bristol, Aberdeen, Munich, Dublin, Warsaw, and Utrecth amounting to €2.1b ($1.93b).

"The successful fund raise of MERIT amidst the current COVID-19 pandemic demonstrates the confidence and endorsement that investors have in Mapletree’s fund management capability and track record. Investors of MERIT will benefit from a robust and stable income stream generated from a portfolioofhigh quality European commercial assets, anchored by long lease profiles," Mapletree Group CEO Hiew Yoon Khong said in a statement.

MERIT will be managed by Mapletree Real Estate Advisors, a wholly owned subsidiary of Mapletree. Retaining a 27% stake of MERIT, it is Mapletree's 11th private equity fund.

MERIT followed three previous funds outside of Singapore: an Australia-based commercial fund, a logistics fund based in Europe and United States, and a student accomodation fund based in United Kingdom and United States.