Singapore-listed Manulife US Real Estate Investment Trust (MUST) has announced the sale of its Peachtree property, a 28-storey Class A office building in Atlanta, Georgia, for approximately $133.8m. The transaction, subject to lender approval, is part of MUST’s strategy to repay 58% of its outstanding loans due in 2026.
The Peachtree building, with a net lettable area of 560,629 square feet, is currently 77% occupied. The sale price was determined on a willing-buyer willing-seller basis, taking into account an independent valuation by Cushman & Wakefield, which valued the property at $133.4m as of 28 April 2025.
The proceeds from the sale will enable MUST to significantly reduce its debt, following previous divestments of Capitol and Plaza properties. The manager of MUST aims to use the net sales proceeds to make an early partial repayment of loans, reducing the debt due in 2026 by approximately 78%, with $45.1m remaining.
The sale agreement includes a $7.5m deposit from the buyer, SSC VII Investor, LLC, and customary provisions such as representations, warranties, and indemnities. The transaction is expected to complete in Q2 2025, pending necessary approvals.
The divestment aligns with MUST’s focus on risk management amidst challenging US market conditions, providing liquidity and flexibility to meet debt obligations. The manager continues to explore further property sales to enhance financial stability and flexibility.
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