SINGAPORE (EDGEPROP) - Mapletree Pan Asia Commercial Trust (MPACT) has announced the divestment of Festival Walk Tower, the office component of Festival Walk, a mixed-use development in Hong Kong, for HK$1.960 billion ($328.1 million). The sale, set to complete in February 2026, aligns with MPACT's strategy to optimise its portfolio and strengthen its financial position, with proceeds directed towards debt reduction.

This move follows the recent sale of two Japan office buildings and is expected to improve MPACT's aggregate leverage from 37.6% to approximately 36.5%, without materially impacting its net asset value or net property income for FY2025/2026.

Festival Walk Tower has a lettable area of 213,982 sq ft and a committed occupancy of 94.2% as at Sept 30. The divestment consideration of HK$1.96 billion for the property is in line with an independent valuation as at Nov 30.

Read also: MPACT to divest Mapletree Anson for $775 mil in bid to pare debt

MPACT will retain full ownership of the retail mall component of Festival Walk, which remains a key asset with near-full occupancy and a valuation of HKD21,777 million (S$3,742.4 million). The divestment sharpens MPACT's focus on quality assets in core markets, particularly Singapore, which contributes the majority of its net property income and assets under management. "This transaction reflects our continued agility and commitment to portfolio optimisation," said the manager.