Mapletree sees ‘challenging’ year ahead for its SG market

Uncertainties over the Omicron variant will affect operations, the company said.

Mapletree Industrial said 2022 will be a “challenging” year ahead for its Singapore market given the uncertainties over the “trajectory of economic recovery from COVID-19 pandemic.”

“There are still lingering uncertainties about the new Omicron variant and the outlook of firms is expected to remain lukewarm in 2022,” Mapletree said.

The company however said it already has plans laid out to keep its portfolio resilient; one of which is by focusing on tenant retention.

Apart from that, Mapletree has also resumed the distribution reinvestment plan to help fund the progressive needs of their development projects.

Meanwhile, the company has also announced the expected completion of its redevelopment projects at 161, 163 & 165 Kallang Way by the first half of 2023; and the divestment of 19 Changi South Street 1.

2022 by the numbers

In 2022, Mapletree sees a potential net new supply of 2.3 million square metres (sqm), and of which, multi-user factory space will account for 1.0 million sqm, business park space will account for 0.08 million sqm.

As of the end of 2021, the total stock for factory and business park space was at 39.4 million sqm. Median rents for these spaces were at S$1.83 per square foot per month (psf/mth) and $4.13 psf/mth, respectively.