Manulife US REIT to acquire three properties in US for $201.6m

Manulife US REIT to acquire three properties in US for $201.6m
Tanasbourne Commerce Center, Hillsboro, Portland

Singapore-listed Manulife US Real Estate Investment Trust (Manulife US REIT) has agreed to acquire three properties in the United States for $201,6 million.

The company has entered into a purchase agreement;

– with Tempe Diablo LLC to acquire the property known as Diablo Technology Park located at 2900 South Diablo Way, Tempe, Arizona for US$61.75 million;

– with CAZ 5 DE LLC to acquire the property known as Park Place located at 1650 & 1700 South Price Road, Chandler, Arizona for US$106.0 million;

– with Tanasbourne Property, LLC to acquire the property known as Tanasbourne Commerce Center located at 3188 & 3175 NE Aloclek Drive and 3300 NE 83rd Avenue, Hillsboro, Oregon for US$33.85 million.

The properties will be Manulife US REIT ’s maiden acquisitions in these markets.

”Having built a high-quality portfolio of Trophy/Class A properties since IPO, the next phase of growth for MUST is the entry into high-growth sunbelt/magnet cities. The acquisitions are in line with MUST’s post-COVID-19 themes and will enhance the current portfolio with higher occupancies, longer WALE and growth tenants in the technology and healthcare sectors,”the company said in a statement.

The properties are located in markets that will continue to capture in-migration not only of highly skilled talent pools but also a multitude of technology and healthcare corporates, further driving growth, according to the company.

The properties will be acquired at 2.3% lower than the total appraised fair values. The acquisitions are expected to be DPU accretive to unitholders. The 1H FY2021 pro forma DPU is expected to increase by 4.4% from 2.70 US cents to 2.82 US cents after the acquisitions.