Manulife US Real Estate Investment Trust (MUST) has sold one of its properties, Peachtree, for US$133.8 million.
The sale of this 28-storey Class A office building in Atlanta, Georgia, is to an unrelated third party and will net MUST proceeds of some US$118.8 million.
MUST will then use proceeds to make an early repayment of its 2026 debts, which will then reduce its FY2026 debt to US$45.1 million.
Along with the previous divestments of Capitol in California and Plaza in New Jersey, the repayment from the sale of Peachtree as well as cash generated will bring its total debt repayment to close to US$290 million since November 2024.
"We remain focused on moving MUST towards recovery as soon as possible so that we may return to a growth trajectory," says CEO and CIO of the manager John Casasante.
"We remain in active discussions on the divestment of additional properties," he adds.
See also: To raise US$165 mil by mid-year, what will MUST divest next?
Under a master restructuring agreement, MUST is required to achieve minimum cumulative net sales proceeds of US$328.7 million by June 30.
With the sale of Peachtree, MUST has reached 82% of this target.
MUST units closed at 6.3 US cents on May 9, up 5% for the day but down 30% year to date.
