SINGAPORE (EDGEPROP) - Manulife US Real Estate Investment Trust (Manulife US REIT) has announced a comprehensive Growth and Value Up Plan aimed at revitalising its portfolio and positioning the REIT for long-term growth. The plan includes seeking unitholders' approval at an Extraordinary General Meeting on Dec 16 for a new Disposition Mandate, authorising the sale of up to three existing properties to raise up to US$350 million ($454 million) in net proceeds, and an Acquisition Mandate, allowing investments in new assets with a total value of up to US$600 million.

These mandates are designed to provide the manager with greater flexibility and speed in executing transactions, bypassing the need for separate extraordinary general meetings for each sale or purchase. The manager has also negotiated Master Restructuring Agreement (MRA) concessions with lenders, including extensions to disposal deadlines and temporary relaxations of financial covenants, to support the plan and ensure sufficient time to meet debt repayment targets.

A key strategic shift is the broadening of Manulife US REIT's investment mandate to include income-producing real estate in both the US and Canada, with an initial focus on industrial, living sector, and retail assets. This diversification aims to reduce exposure to the struggling US office sector, enhance portfolio resilience, and improve long-term returns for unitholders.

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John Casasante, the CEO and CIO of MUST's manager, emphasises that "speed and certainty of execution are critical to achieve best outcomes for the unitholders," and believes the plan will pave the way for exiting the MRA, improving cash flows, and resuming sustainable distributions. Pro forma financial effects indicate a significant reduction in aggregate leverage, though distribution per unit and NAV per unit are expected to decline following asset sales.