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Manulife US REIT's New Jersey acquisitions set to raise DPU

Goola Warden
Goola Warden12/11/2017 08:00 AM GMT+08  • 13 min read
Manulife US REIT's New Jersey acquisitions set to raise DPU
SINGAPORE (Dec 11): On a chilly November morning, Manulife US Real Estate Investment Trust took a small group of analysts and journalists on a property tour through mid-town and lower mid-town Manhattan and across the Hudson River to Jersey City. One key
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SINGAPORE (Dec 11): On a chilly November morning, Manulife US Real Estate Investment Trust took a small group of analysts and journalists on a property tour through mid-town and lower mid-town Manhattan and across the Hudson River to Jersey City. One key stop was 10 Exchange Place, a property that could benefit from the economic recovery and shifting demographic trend in the US.

The property is particularly important to Manulife US REIT investors. It was acquired in October for US$313.2 million ($422.8 million). To fund the purchase, the REIT raised US$208 million from unitholders, through an issue of 299.29 million new units based on a 41-for-100 rights issue at 69.5 US cents per new unit. Manulife US REIT has four other office buildings in the US, but 10 Exchange Place is now its second-most-valuable asset, after Michelson in Orange County, which is valued at US$342 million.

10 Exchange Place is a 30-storey Class A building next to a train station on the Hudson Waterfront. It has an unobstructed view of Manhattan’s skyline. The building has minimal supporting columns and its floor plates range from about 24,000 sq ft on the top floors to about 39,000 sq ft on the lower floors. The property has a net lettable area (NLA) of 730,598 sq ft and a weighted average lease to expiry of 5.8 years, boosting the REIT’s WALE to 5.9 years. It has a total of 25 tenants and the top five tenants (by cash rental income) are Amazon Corporate, ACE American Insurance Co, Rabo Support Services, Kuehne & Nagel and Opera Solutions.

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