When Manulife US REIT was first listed on the Singapore Exchange, it was touted as the proxy for investors to gain access into the premium segment of the US office market.

With a portfolio of trophy class and grade A office assets, the REIT promised investors exposure to a stable of quality multinational tenants operating in growth markets across the US.

But as it turned out today, investors who rode with Manulife US REIT since its initial public offering (IPO) may have lost as much as 70% of their capital, after excluding distributions.

While COVID-19 has often been singled out as the factor that has pummelled its once-rosy prospects, Manulife US REIT’s current predicament may better be traced to an acquisition that expanded its remit beyond trophy class and grade A office assets.

Related: Manulife US REIT mulls steps to reduce debt amid elevated gearing levels