SINGAPORE - Manulife US Real Estate Investment Trust (Manulife US Reit) on Friday (April 13) announced it has entered into agreements to acquire two properties in the US for US$387 million, and has established a US$1 billion multicurrency debt issuance programme.
DBS Bank has been appointed as arranger and dealer of the US$1 billion debt issuance programme, which the Reit said is aimed at increasing its financial flexibility by diversifying its sources of funding. Proceeds from the programme may be used for working capital requirements and the general corporate purposes of the group.
In a separate filing with the Singapore Exchange, the Reit said it has acquired 1750 Pennsylvania Avenue in Washington DC and the Phipps Tower in Buckhead, Atlanta.
The property in the US capital, purchased for US$182 million, is a 13-storey, 277,243-square foot Class A office building that is located a block away from the White House and in proximity to the International Monetary Fund, the World Bank and the Federal Reserve.
It also counts the US government, leading US corporates and global agencies amongst its tenants, the Reit added.
Meanwhile, Phipps Tower, purchased for US$205 million, is a 19-storey, 475,091 sq ft office tower located in one of the primary business districts of Atlanta.
The total acquisition cost for the two properties is estimated at US$398.9 million, comprising the purchase price, the acquisition fee of US$2.9 million, and professional and other transaction fees and expenses of US$9 million. The manager's acquisition fee is to be paid in the form of units of Manulife US Reit units.
The funding mix for the Phipps Tower acquisition may comprise a combination of debt and issuance of capital market instruments such as perpetual securities under Manulife's new US$1 billion debt issuance programme and/or equity fund raising.
Manulife US Reit closed at US$0.925 on Thursday.