The manager of Manulife US REIT (MUST) is looking to acquire three properties in Phoenix, Arizona and Portland, Oregon for a total consideration amount of US$201.6 million ($276.3 million).
On Nov 30, the manager entered into three purchase agreements for the acquisition of the properties.
The first was with Tempe Diablo LLC to acquire Diablo Technology Park in Tempe (Phoenix), Arizona for a consideration of US$61.75 million.
Another was entered into with CAZ 5 DE LLC to acquire Park Place in Chandler (Phoenix), Arizona for a consideration of US$106.0 million.
The third and final purchase agreement was entered into with Tanasbourne Property to acquire Tanasbourne Commerce Center in Hillsboro, Oregon for a consideration of US$33.85 million.
All three vendors are unrelated.
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According to an independent valuation conducted by Jones Lang LaSalle Americas, all three properties were purchased at at least 0.8% below the valuation amounts.
The acquisitions, according to MUST, have enabled the REIT to enter into the high-growth and, or magnet cities of Phoenix, Arizona and Portland, Oregon.
They are also in line with MUST’s post-Covid-19 themes and will boost its current portfolio with higher occupancies, longer weighted average lease expiries (WALEs) and growth tenants in the technology and healthcare sectors.
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In addition, 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, says the manager.
Diablo Technology Park has a net lettable asset (NLA) of 354,434 sq ft, while Park Place has an NLA of 274,700 sq ft.
Tanasbourne Commercial Center has an NLA of 132,851 sq ft.
The acquisitions are said to be distribution per unit (DPU) accretive to MUST’s unitholders, with 1HFY2021 pro forma DPU expected to increase by 4.4% to 2.82 US cents.
Units in MUST closed at 71 US cents on Nov 29.
Photo: MUST
