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Singapore: Singapore-based Mapletree Investments is winding down its $1.3 billion (£1.02 billion) student accommodation fund after it fell well short of performance targets.
The Temasek-owned real estate manager has begun selling assets from its Mapletree Global Student Accommodation Private Trust (MGSA), following a net internal rate of return of 1.1 per cent at the end of 2025 far below its 12 per cent target, Bloomberg reported.
Launched in 2017 with $1.3 billion in assets, the fund’s value has since declined to around $700 million.
Mapletree has already started disposals, including the sale of two Scottish properties to CVC DIF, and had previously marketed a portfolio of 4,844 UK beds.
The fund was backed by $535 million in equity from investors including Great Eastern Life, DBS Bank and UBS, with assets spanning more than 14,000 beds across the UK and US.
Investors are now expected to recover less than 80 per cent of their capital, according to Bloomberg, after a proposal to extend the fund was rejected.
Despite this, Mapletree continues to target student housing selectively, including a new purpose-built scheme in Perth, Australia, due for completion in 2027.
Highlights:
- Mapletree Investments is winding down its $1.3 billion student accommodation fund after significantly underperforming targets
- The Mapletree Global Student Accommodation Private Trust delivered just 1.1 per cent returns, far below its 12 per cent goal
- The PBSA fund’s assets have fallen from $1.4 billion to around $700 million since launch in 2017
- Asset sales are underway, including UK student housing properties and Scottish schemes sold to CVC DIF
- The fund includes more than 14,000 student beds across the UK and US markets
- Investors are expected to recover less than 80 per cent of their capital
