Mapletree strengthens ties with Itochu

The partnership aims to develop logistics properties

MAPLETREE Investments has strengthened its partnership with Itochu Corporation by teaming up to develop logistics properties in Japan.

It has signed a memorandum of understanding (MOU) to form a joint venture to undertake primarily build-to-suit development projects for logistics tenants in Japan, Mapletree said yesterday.

The partnership aims to develop US$300 million to US$500 million worth of logistics properties over the next 24 months.

The two companies also cemented their strategic alliance by extending for a further two years through another MOU to collaborate on investment and development of logistics, retail, industrial and commercial real estate projects in Japan, Singapore and the rest of Asia.

This marked the second extension of the strategic alliance MOU between Mapletree and Itochu, which was first signed in October 2005 and which was extended in November 2007 through a supplemental MOU (SMOU) to expand the scope of collaboration.

‘We are delighted to continue our mutually successful and enriching partnership with Itochu,’ said Mapletree CEO Hiew Yoon Khong. ‘The October 2005 MOU and November 2007 SMOU facilitated Mapletree’s entry into the logistics real estate market in Japan. Through our collaboration with Itochu, Mapletree has been able to establish our footprint in the logistics real estate market in Japan with the acquisition of seven logistics assets in Japan worth a total of $571 million,’ Mr Hiew said.

He noted that Itochu is also now an investor in the Mapletree Industrial Trust, which holds the $1.7 billion industrial assets privatised by JTC Corporation.

‘This new JV and extension of the MOU affirm both parties’ intent to further strengthen and deepen the strategic partnership and leverage on each others’ strengths and capabilities to harness the opportunities in the real estate market in Asia, particularly where windows of opportunity exist in this economic environment,’ said Mr Hiew.

There is a growing demand by logistics operators in Japan for new and well- built logistics and distribution facilities but with current economic conditions, not many players are able to fulfil the needs of these operators, according to Mr Hiew.

‘Mapletree intends to step up and provide this solution together with our partner, Itochu,’ he said.

The completed assets will be offered to Mapletree’s logistics real estate investment trust, Mapletree Logistics Trust, on a right of first refusal basis.

Source : Business Times – 7 Dec 2009