Mapletree PanAsia Com Tr sold another office building in Hong Kong for over 300 million yuan | Lianhe Zaobao

Mapletree Pan Asia Commercial Trust has signed an asset sale agreement with an unrelated third party to sell the office building at Festival Walk in Hong Kong for HKD 1.96 billion (approximately SGD 328.1 million). The trust announced the asset disposal after the market closed on Wednesday (December 10). The announcement stated that the sale price is consistent with an independent valuation as of November 30, and the buyer will pay in cash, with the transaction expected to be completed in February next year. The proceeds from the sale will be used to repay debt, enhancing financial flexibility and allowing the trust to seize future opportunities. The proposed office building at Festival Walk has four floors with a total leasable area of 213,982 square feet and currently has seven tenants. As of the end of September this year, the committed occupancy rate was 94.2%. Festival Walk is located above the Kowloon Tong MTR station in Hong Kong and is a mixed-use project that combines a seven-story shopping mall with a four-story office building. After the sale of the office building, the trust will continue to hold other parts of Festival Walk. This sale of Hong Kong assets follows the successful disposal of two office buildings in Japan in August this year, demonstrating the trust manager's ongoing commitment to remain agile and optimize the investment portfolio. By focusing on quality assets and prudently responding to macroeconomic headwinds in the Greater China region, the trust further solidifies the core stability of its investment portfolio. Upon completion of the sale of the office building at Festival Walk, Mapletree Pan Asia Commercial Trust's real estate portfolio will encompass 15 commercial properties located in major gateway markets in Asia, with a total leasable area of 10.2 million square feet and a valuation of HKD 15.6 billion. The trust expects that this transaction will not have a material impact on net real estate income and net asset value for the fiscal year ending March next year. The company's stock price closed at SGD 1.42 on Wednesday, unchanged