Mapletree Pan Asia Commercial Trust (MPACT) has entered into an asset sale agreement to divest Festival Walk Tower in Hong Kong for HK$1.96 billion ($328.1 million).
Through its subsidiary Festival Walk Limited, MPACT will divest the office component of Festival Walk called Festival Walk Tower to an unrelated third party.
The divestment consideration will be satisfied wholly in cash with completion targeted for Feb 2026.
The divestment is not expected to have material impact on MPACT’s net asset value and net property income for FY2025/2026 ended March 31. Assuming completion of the transaction on Sept 30, with net proceeds directed towards debt reduction, MPACT’s aggregate leverage would improve to 36.5% from 37.6% previously.
Upon completion of the divestment, MPACT’s portfolio will comprise 15 commercial properties located across five key gateway markets of Asia, with a total lettable area of 10.2 million square feet independently valued at $15.6 billion.
Singapore remains MPACT’s core foundation, providing long-term stability by contributing approximately 65.8% and 58.0% of MPACT’s NPI and AUM respectively.
Festival Walk Tower has a lettable area of 213,982 square feet with seven tenants. As at Sept 30, the property had a committed occupancy of 94.2%.
Following this divestment, MPACT will retain 100% ownership and operations of Festival Walk’s remaining components. The retail mall has a lettable area of 588,890 square feet and is independently valued at HK$21,777.0 million ($3,742.4 million) as at March 31, with a committed occupancy of close to 100% as at end Sept.
Units in MPACT closed flat at $1.42 on Dec 10.
