[SINGAPORE] The manager of Mapletree Pan Asia Commercial Trust (MPACT) announced on Wednesday (Dec 10) that its subsidiary Festival Walk will sell Festival Walk Tower for nearly HK$2 billion (S$328.1 million) to an unrelated third party.
The tower, which is the office component of Festival Walk in Hong Kong, has a lettable area of 213,982 square feet (sq ft) and seven tenants.
As at Sep 30, the property had a committed occupancy of 94.2 per cent.
Its purchase price was originally HK$2.3 billion, based on the independent valuation commissioned by the manager of Mapletree North Asia Commercial Trust (MNACT) and carried out at the end of October. The valuation was undertaken for the merger of Mapletree Commercial Trust (MCT) and MNACT in 2021.
The Reit manager noted that the divestment consideration will be paid entirely in cash. Its completion is set for February next year.
Divestment proceeds will be directed towards “debt reduction to further enhance financial flexibility and position MPACT to capitalise on future opportunities”, said MPACT’s manager.
Post-divestment, MPACT will keep 100 per cent ownership and operations of Festival Walk’s remaining components.
“The key component is the retail mall, which has a lettable area of 588,890 sq ft, independently valued at HK$21.8 billion as at Mar 31,” the manager of the Reit said.
Festival Walk is a mixed-use development with a seven-storey shopping mall, a four-storey office tower and three basement car park levels.
Located in the Kowloon Tong residential district, it is near two universities, and has direct access to the Kowloon Tong MTR station.
After the sale, MPACT’s portfolio will comprise 15 commercial properties in five Asian markets, with a total lettable area of 10.2 million sq ft independently valued at S$15.6 billion.
Units of MPACT closed unchanged at S$1.42 on Wednesday.
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