Mapletree looks to deploy 20% of new Asia fund in India

Singapore's Mapletree is looking at deploying 20% of its new Mapletree Emerging Growth Asia (MEGA) fund in India , said sources in the know .

"Though they have investment target of $ 2.1 billion, they are looking at $ 400 million to $ 500 million here," said the source.

Though Mapletree has not publicly announced the total corpus of the fund , early this month said it is targeting total investment value of $2.1 billion for its emerging Asia logistics development strategy under MEGA.

MEGA is looking at developing warehousing properties in Malaysia, Vietnam and India markets . The fund is looking to deploy 40% each in Malaysia and Vietnam , sources said.

"In India , they are looking to deepen their presence in six core markets and looking at new markets ," sources said.

An email sent to Mapletree did not elicit any response.

MEGA launched with a seed portfolio of seven assets, The initial pool comprises four development projects in Malaysia, one in India and two warehouses in Vietnam. The remaining targeted $2.1 billion portfolio is yet to be identified, sources said

The Fund is targeting to deliver an internal rate of return (IRR) in excess of mid-teens, the investor said earlier this month .

The MEGA fund has secured $250 million in commitments for the first close of the fund. It also raised more than US$250 million in commitments via a joint venture and co-investments that will be deployed into selected development projects in Malaysia.

Mapletree said MEGA seeks to raise an additional $200 million in capital commitments for the second close targeted by early next year.

Mapletree uses a two-pronged strategy with the parent Mapletree Investments develops warehousing and Mapletree Logistics Trust buys such properties.

Mapletree Logistics Trust earlier this year bought a warehouse near Bhiwandi from Morgan Stanley for Rs 389 crore.