Proposal to rescue Manulife US Reit falls flat
Its sponsor group should perhaps repackage its assets under a new fund or trust somewhere else
Add BT as a preferred source
Ben Paul
THE market delivered a crystal clear verdict this past week on the much-anticipated proposal by Manulife US Real Estate Investment Trust (MUST) to remedy a breach of its loan covenants and place itself on a stronger financial footing.
On Nov 30 – a day after unveiling a proposal to shrink its property portfolio and take on a loan from its sponsor group at a double-digit rate of interest – units in MUST fell more than 42.8 per cent to US$0.052.
MUST had climbed strongly during the first three weeks of last month – to a closing high of US$0.103 on Nov 22 – after its manager said in its Q3 2023 business update that its sponsor group had assembled a support package for the beleaguered US office property trust.
TRENDING NOW
CSE Global independent director quits after clashes with chairman Eugene Lai over board refresh
What’s wrong with Orchard Road? Experts weigh in on the street’s cachet and its future
‘I felt like dying’: Thai Singha beer scion speaks up after disclosure of alleged sexual abuse
Rare brutalist Singapore house opens to the public before changing hands
