IE Singapore chief to join Mapletree next year

Singapore

THE chief executive officer of International Enterprise (IE) Singapore, Lee Ark Boon, is joining Mapletree Investments in a senior position that will have him stationed in China from January.

There, he will oversee the real estate group's pipeline of logistics development projects, The Business Times understands.

Mr Lee leaves the trade promotion agency on Dec 31, ahead of the formation of Enterprise Singapore - the product of the upcoming merger between IE and Spring Singapore - in the second quarter of next year.

Asked to confirm the news, a Mapletree spokesman declined comment; an IE Singapore spokesman also said that Mr Lee "cannot comment at this stage".

Mapletree is on a major push to double its logistics gross floor area (GFA) across China from two million sq m as at May this year to between four and five million sq m, to capitalise on the growing e-commerce industry there, Mapletree's regional chief executive in China Goh Chye Boon said in an interview a few months ago.

As at May, Mapletree had 5.4 billion yuan (S$1.1 billion) of completed logistics projects, with another 5.3 billion yuan worth in the works.

This expansion will be implemented in partnership with IE Singapore, which will act as a facilitator and adviser to Mapletree, he said.

Mr Goh said that Mapletree's initial focus has been on central and eastern China, in cities such as Shanghai and Beijing, but that the next wave will focus on cities further west, tapping into China's "Go West" strategy. The bulk of its investments will go into Chengdu and Chongqing, where the growth has been "phenomenal".

He added that Mapletree will also target key hubs in the north and south; one example is Kunming in the south-west of China, because of its status as a hub for South-east Asian countries.

BT understands that Mr Lee will be managing some 20 to 30 warehouse development projects across China in his new role at Mapletree.

To be sure, this is not a newly created position; he will replace someone who will be moved to another role.

Mapletree has an expanding logistics portfolio, some of which are held through its Mapletree Logistics Trust platform.

In its fiscal year ended March 31, it secured 10 new logistics development projects in China, with a combined GFA of 852,000 sq m, in fast-growing cities such as Tianjin, Chongqing and Chengdu.

During the year, Mapletree also completed 10 development projects in China.

When stabilised, Mapletree as the sponsor may divest these properties, which will then be offered to the trust for acquisition.

Mr Lee, as chief of IE Singapore, had facilitated Singapore's participation in the Chongqing Connectivity Initiative, which aims to drive transport and logistics collaboration between Singapore and Chongqing, among other areas.

He was at the helm of the agency for less than two years.