The Singapore-listed Manulife US Real Estate Investment Trust (Manulife US Reit) has bought two properties in the United States for US$387 million (S$507 million), it said yesterday.
It also told the Singapore Exchange in a filing that it has set up a US$1 billion multicurrency debt issuance programme.
This is aimed at increasing its financial flexibility by diversifying its sources of funding.
The properties it has acquired are 1750 Pennsylvania Avenue in Washington and the Phipps Tower in Buckhead, Atlanta.
The US$182 million property in the US capital is a 13-storey, 277,243 sq ft Class A office building a block away from the White House and near the International Monetary Fund, the World Bank and the Federal Reserve.
It counts the US government, leading American companies and global agencies among its tenants, the Reit said.
Phipps Tower, which cost the trust US$205 million, is a 19-storey, 475,091 sq ft office tower in one of Atlanta's primary business districts.
The total acquisition cost for both properties is estimated at US$398.9 million. This comprises 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.
The funding mix for the acquisitions may comprise a combination of debt and capital market instruments such as perpetual securities under Manulife's new US$1 billion debt issuance programme. It may also include equity fund raising.
The Reit said proceeds from the US$1 billion programme may be used for working capital requirements and general corporate purposes.
DBS Bank has been appointed arranger and dealer of the US$1 billion debt issuance programme.
Manulife US Reit units closed 0.5 cent down at 92 cents yesterday.