Manulife US REIT to place 73.6 million units for maiden acquisition

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Singapore-listed Manulife US REIT has announced the proposed private placement of 73,600,000 new units to partially fund its maiden acquisition.

The placement, which seeks to raise at least USD60.1 million, will also be subjected to an upsize option up to 24,947,000 additional new units, taking the exercise’s potential gross proceeds to approximately USD80.5 million.

The proposed exercise will increase the total number of Manulife US REIT units in issue by 11.7%, assuming that the upsize option is not exercised.

The placement units will be priced between USD0.817 and USD0.842, and offered to institutional and other qualified investors.

Approximately USD75 million from the proceeds, which is equivalent to 93.2% of the placement exercise, will be deployed to partially fund the acquisition of 500 Plaza Drive in Secaucus, New Jersey.

Manulife US REIT announced on the same day that will be acquiring the 11-storey Class A office building for USD115 million via a combination of debt and equity funding.

The property features a weighted average lease expiry (WALE) of 9.2 years, and an occupancy of 98.9% based on committed leases as at 31 March 2017.

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About Author

Ridzwan Rahmat has been analysing Singapore-listed REITs and business trusts, since 2008. For disclosure purposes, Ridzwan is currently vested in Mapletree Greater China Commercial Trust, Mapletree Industrial REIT and Mapletree Logistics Trust.

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