The manager of Singapore-listed Manulife US Real Estate Investment Trust (REIT) is selling the Phipps Tower office building in Atlanta to its sponsor, The Manufacturers Life Insurance Company, for an undisclosed sum.
The 20-storey building was valued at $210m (€181m) on 31 December 2022.
The REIT acquired the building in 2018 for $205m when it also bought 1750 Pennsylvania Avenue in Washington DC for a total price of $387m from John Hancock Life Insurance.
The manager said it aimed to enter into a definitive agreement for the disposal of the building by 30 June, and would waive the disposal fee.
Apart from the divestment of its Oregon property, Tanasbourne, and its proposed divestment of Philipps Tower, the manager said it was exploring other fundraising options to further reduce the trust’s gearing.
Last month, following media speculation, Manulife US REIT confirmed it was in talks with Mirae Asset Global Investments to buy Manulife US REIT’s management platform.
In an update, the manager said it is now also negotiating with other prospective partners to sell management rights to the trust, following the lapse of an exclusivity period with Korea’s Mirae.
The manager said it was committed to considering and evaluating other potential options to further strengthen the balance sheet of Manulife US REIT and to reduce its borrowings.
To read the latest edition of the latest IPE Real Assets magazine click here.
No comments yet