The Business Times
business-time-50

Manulife US Reit plans divestments, sponsor loan to fix covenant breaches; distributions still halted

google-preferred-sourceAdd BT as a preferred source
Raphael Lim
Vivienne Tay

Raphael Lim &

Vivienne Tay

Published Wed, Nov 29, 2023 · 10:06 AM
    • The Reit will obtain around US$235 million in funding from its sponsor, comprising the sale of its Park Place property (pictured) to the sponsor and a sponsor-lender loan.
    • The Reit will obtain around US$235 million in funding from its sponsor, comprising the sale of its Park Place property (pictured) to the sponsor and a sponsor-lender loan. PHOTO: MANULIFE US REIT

    MANULIFE US Real Estate Investment Trust (MUST) plans to raise funds through a mix of asset dispositions and a sponsor-lender loan to remedy its financial covenant breach, its manager said on Wednesday (Nov 29).

    The recapitalisation plan – which requires unitholders to vote on three inter-conditional resolutions at an upcoming extraordinary general meeting (EGM) – seeks to “revitalise” the Reit, and provide more time for the manager to sell assets and realise value. 

    However, distributions would continue to be halted until December 2025. The distributions could resume if the Reit meets “early reinstatement conditions” which are similar to the regulatory leverage limits in Singapore.

    manulife us reit

    TRENDING NOW

    Traffic through the strait has been resuming but with interruptions, and there is still little clarity over a permanent solution for passages through the chokepoint.

    Qatari LNG ship struck in Strait of Hormuz, testing US talks

    This comes after a Citi note on Tuesday that lifted target prices for all Singapore banks, with a leading preference and “buy” call for DBS.

    DBS shares rise 1.9% to hit all-time intraday high as sentiment improves

    Aster deputy CEO Andre Khor, citing the age of the “polycrisis”, says: “It’s very important to be agile, to be focused on execution… We don’t know all the answers but we keep going forward.”

    ‘Baptism of fire’: Andre Khor on leading Singapore refiner Aster through an energy crisis

    Singapore ranks as the world’s most expensive city for cars and placed third globally for residential property.

    Singapore retains top spot as most expensive city for HNWIs, with five Apac cities in global top 10

    Latest T-bills Treasury Bills Results & Interest NewsLatest SSB Singapore Savings Bonds NewsLatest COE Certificate of Entitlement News
    Latest Johor-Singapore SEZ NewsLatest BTO Build To Order & Sales of Balance NewsLatest STI Straits Times Index NewsLatest SGX Dividends, Share Price NewsLatest Bonds Market NewsLatest Singapore Stocks To Buy NewsLatest Singapore Economy News
    View More