Manulife US Real Estate Investment Trust (BTOU) has asked its unitholders to approve a “Growth and Value Up Plan” that pairs new sale and purchase authorities with revised lender concessions.
Under a proposed Disposition Mandate effective from Jan, 1 2026 to Apr, 30 2027, the manager may sell up to three existing U.S. office properties to raise net proceeds of up to about 470 million Singapore dollars.
Concurrently, an Acquisition Mandate would allow the trust to buy income-producing real estate in the United States and Canada—initially focusing on industrial, living-sector and retail assets—for up to roughly 810 million Singapore dollars in agreed property value. Debt funding for these purchases will be capped at 40 per cent of the deal size, and each acquisition must post an interest-coverage ratio of at least 1.6 times.
The manager also disclosed that it has negotiated provisional concessions with existing lenders, including: • Extension of the asset-sale deadline to Jun, 30 2026. • Temporary relaxation of financial covenants, permitting unencumbered gearing of up to 80 per cent until Jun, 30 2026 and a minimum bank interest-coverage ratio of 1.5 times through Dec, 31 2026. Full effectiveness of these concessions depends on final approvals from all lenders.
The trust has already raised about 369 million Singapore dollars from three asset sales completed since 2024, meeting roughly 83 per cent of its minimum sale target of about 443 million Singapore dollars set under a 2023 recapitalisation plan.
If approved, the broadened investment mandate will permit the REIT to diversify beyond U.S. offices and pursue higher-yielding sectors while continuing debt reduction, with the aim of positioning the vehicle for long-term growth and eventual exit from its existing master restructuring agreement.
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