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95.1 percent of the US$94 million raised from the placement of 114.078 million new units in Manulife US REIT has been used to partially finance the acquisition.
Manulife US Real Estate Investment Trust (Manulife US REIT) has completed its acquisition of a two-tower class A office building in Washington DC for US$122.0 million.
The highest building in Fairfax Centre, Centrepoint is leased to 21 tenants which include several large companies as well as a government agency with stable credit profiles like ASM Research, Board of Supervisors for Fairfax County, Edelman Financial Services, Salient Federal Solutions and ECS Federal.
In an SGX filing dated 30 April, the REIT’s manager said that more than 50 percent of the tenants use the building as their headquarters location.
It added that the acquisition is “in line with the REIT’s investment strategy and business model, and will be financed by a combination of loans and issuance of new units in Manulife US REIT via private placement of new units in Manulife US REIT to raise gross proceeds of no less than US$94.0 million”.
With this, the REIT’s manager revealed that 95.1 percent of the US$94 million raised from the placement of 114.078 million new units in Manulife US REIT has been used to partially finance the acquisition.
“As the fees and expenses relating to the acquisition and the private placement of US$4.6 million (which is equivalent to 4.9 percent of the gross proceeds of the private placement) are less than the originally estimated amount of US$5.0 million, the balance of the amount of US$0.4 million has been used by the manager to partially fund the acquisition,” it said.
“Save for the redeployment of such amounts to partially fund the acquisition, the use of the gross proceeds from the private placement is in accordance with the percentage of the gross proceeds of the private placement allocated to such use.”
Victor Kang, Digital Content Specialist at PropertyGuru, edited this story. To contact him about this or other stories, email victorkang@propertyguru.com.sg
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