Manulife US REIT's unitholders voted overwhelmingly for all three resolutions.
Resolution 1 was the sale of Park Place to the sponsor for US$98.7 million ($131.17 million).
Resolution 2 — over which there was much debate — was to approve the sponsor loan of US$137 million at an interest rate of 7.25% a year with a success fee of 21.1%. This was the most contentious of the three resolutions.
Resolution 3 was also controversial as it provided the manager and the lenders with the authority to divest “non-core” properties, albeit at a minimum sum of US$328.7 million.
The three resolutions were interdependent and all three had to be passed for MUST to survive.
Proxy advisors Glass Lewis and ISS had recommended that unitholders vote FOR all three resolutions, which they did. For resolutions 1, 97.74% of unitholders voted FOR. Similarly, 97.55% voted FOR resolution 2 and 98.07% voted for resolution 3.
See also: CICT's manager proposes to acquire ION Orchard at $1.85 billion, subject to EGM
The affirmative vote was overwhelming despite a couple of last minute tweaks announced on Dec 13. These included that any sale at levels below the pre-approved pricing for the non-core assets would require the consent of the lenders and the sponsor-manager.
More on Manulife US REIT this year:
- Proxy advisor says vote FOR for all three resolutions at Manulife US REIT’s EGM (December)
- Manulife US REIT units fall over 40% on debt restructuring plans, DBS downgrades to 'hold' (November)
- Manulife US REIT’s lifeline in the hands of EGM (November)
- Manulife US REIT's aggregate leverage falls slightly in 3QFY2023 to 56.0% from 56.7% (November)
- MUST appoints Marc Feliciano as chairman of the board of directors (October)
- ‘Absolutely’ possible to save Manulife US REIT, says sponsor but time not on its side (August)
- Manulife US REIT halts DPUs in 1HFY2023; unencumbered gearing ratio down to 59.7% (August)
- MUST’s portfolio valuation falls by 14.6% to US$1.63 bil; aggregate leverage breaches 50% limit (July)
- Phipps sale expected to sponsor set to cut Manulife US REIT’s leverage as Mirae’s exclusivity period lapses (May)
- Manulife US REIT announces proposed divestment of Phipps to sponsor (May)
- Manulife US REIT's gearing rises further to 49.5%, Mirae proposal expected in 2Q2023 (May)
- Potential rescue by acquirer Mirae could dilute Manulife US REIT's DPU; DBS halves TP to 24 US cents (May)
- Manulife US REIT continues talks with bidder Mirae, divests property for US$0.35 mil loss (April)
- 'Rewards for the brave' who dare to bet on US office S-REITs now: DBS (March)
- What are MUST’s options as gearing nears 50%? (February)
- US office REITs continue to face challenges (February)
- Manulife US REIT reports 18.6% lower 2HFY2022 DPU of 2.14 US cents after capital retention (February)
- Manulife US REIT's aggregate leverage now at 49% based on updated asset valuations (December 2022)
