Mapletree’s North Asia REIT receives interim payment for Festival Walk damage

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Mapletree North Asia Commercial Trust (MNACT) has received HKD45 million (USD6 million) from its insurers as partial payment for damages incurred at Festival Walk.

The interim sum has been disbursed while an assessment of the full quantum of revenue loss, and property damage recoverable remains underway, said the REIT.

Festival Walk is the REIT’s flagship property, and it was badly damaged by violence linked to the Hong Kong protests in 2019.

Related: Insurers begin damage assessment on Mapletree North Asia Commercial Trust property

The loss of retail and office revenue from the property’s closure, as well as property damage sustained are covered under  insurance policies.

“The manager continues to pursue the insurance claims relating to both property damage and revenue loss due to business interruption, and will provide further updates when available”, said the REIT.

As reported by REITsWeek in January 2020, the REIT does not expect any rise in insurance premium to severely affect its finances.

The REIT has also spelt out areas in the property's operations that may not be covered by insurance.

Related: Mapletree’s North Asia REIT spells out measures to defend Festival Walk

MNACT was last done on the Singapore Exchange at SGD0.94, which translates to a distribution yield of about 7.5% according to data compiled in the Singapore REITs table.

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