Manulife REIT announced on May 11 that it will sell the Peachtree building in Atlanta, Georgia, USA to unrelated third-party buyers for $133.8 million. The deal will bring in $118.8 million in net income.

Manulife U.S. Real Estate Investment Trust issued a statement Friday (May 23) saying that under the agreement, the trust has the right to sell up to four first or second batches of assets to third-party buyers to raise a minimum net sale income of $328.7 million by June 30 this year. The trust has achieved a net income target of about 82%, only $60 million below the target.

This release extension will provide the trust with more time to maximize the opportunity to sell the first batch of assets in the current market environment and continue to engage with stakeholders and potential buyers. This extension is subject to Peachtree's completion of the sale transaction.

As support, Manulife, the sponsor of the trust, will not recover any repayments at this stage.

Manulife US REIT has been approved by lenders to extend the deadline for disposal of assets for six months to December 31 this year, and will use the proceeds from the sale of the Peachtree building and an additional $25 million (approximately S$32.15 million) to repay the debt.

Trust announced Friday that lenders have approved the sale of Peachtree, which is expected to close the deal by June.

Manulife US Real Estate Investment Trust’s share price was $0.062 on Friday, starting 1.64%.

John Casasante, CEO and Chief Investment Officer of Manulife U.S. Real Estate Investment Trust, said, "With the strong support of lenders, we are steadily advancing debt repayment, paving the way for recovery and growth. Given that the market remains unclear, the sale-offline will give us more time to fulfill our obligations in the restructuring agreement. We will continue to work on risk management and ensuring long-term stability."