Manulife U.S. REIT signs letter of intent to sell Phipps Tower to sponsor

Manulife U.S. REIT has signed a letter of intent with its sponsor, The Manufacturers Life Insurance Company, for the proposed sale of Phipps Tower, a 20-story class-A office building in Atlanta.

Phipps Tower offers state-of-the-art on-site amenities and provides direct access to Phipps Plaza. It is minutes from a variety of hotels, restaurants and retail amenities. In 2018, MUST acquired Phipps from its sponsor for $205 million, and as of Dec. 31, 2022, Phipps Tower was valued at $210 million.

The REIT manager was previously in talks with Korean firm Mirae Asset Global Investments to explore a possible acquisition of shares in the manager and the subscription of new units in Manulife U.S. REIT, however, the exclusivity period with Mirae regarding a potential transaction has lapsed.

The transaction is subject to satisfactory completion of due diligence and negotiation of terms, and the parties are targeting to enter into the definitive agreements by June 30. The