Phipps Tower in Buckhead, Atlanta. (Photo: Manulife US REIT)Phipps Tower in Buckhead, Atlanta. (Photo: Manulife US REIT)

Manulife US REIT’s exclusivity period with regards to its talks with Mirae has lapsed, and the REIT is disposing of another asset to raise cash and reduce its gearing.

The matters were announced by the REIT on 24 May as investors continue to await the outcome of its ‘strategic review’.

Manulife US REIT first disclosed in March 2023 that it was in talks with Mirae Asset Management on a possible capital injection deal.

Related: Milestones of a meltdown: Manulife US REIT at crossroads amid lofty leverage

“While the manager remains open to ongoing discussions with Mirae, it is also considering proposals from other prospective partners in relation to a strategic transaction involving Manulife US REIT, which will strengthen Manulife US REIT”, its manager said on 24 May.

The REIT will also “consider and evaluate other potential options to further strengthen the balance sheet of Manulife US REIT and to reduce its borrowings”, the manager added.

“Besides the divestment of Tanasbourne and the [proposed disposal of Phipps Tower], the manager will continue to explore various fundraising options, including further asset dispositions to reduce gearing”.

“Proceeds from these divestments will be prioritised towards near-term loan maturities and essential capital expenditure”.

Manulife US REIT announced earlier that it is disposing of Phipps Tower to its sponsor.

The disposal comes just weeks after the REIT announced the disposal of Tanasbourne, which was done to stave off a liquidity crisis.

Manulife US REIT was last done on the Singapore Exchange at USD0.161.

By Shariffa Al-Habshee

Shariffa joined REITsWeek in 2017, and monitors Asia-Pacific REITs for the publication.