Manulife US REIT acquires two properties from sponsor for US$387 mil

SINGAPORE (Apr 13): Manulife US REIT is acquiring two office properties – namely 1750 Pennsylvania Avenue (Penn) in Washington DC and Phipps Tower (Phipps) in Buckhead, Atlanta – from its sponsor’s indirectly wholly-owned subsidiary, John Hancock Life Insurance, for a total of US$387 million ($507.8 million).

The acquisition of both properties from the REIT’s sponsor comes at a 1.8% discount based on the average of their appraisals, which amount to US$394.2 million in total.

While the funding mix for the acquisition has yet to be determined, Manulife US REIT’s manager says it may comprise a combination of debt and perpetual securities under the REIT’s US$1 billion multicurrency debt issuance programme, which it also announced this morning in a separate filing, plus equity fund raising.

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