MUST’s fifth-largest tenant terminates lease at 500 Plaza Drive in New Jersey

The tenant has already paid MUST a termination fee of US$4m.

The Children’s Place, Manulife US REIT’s (MUST) fifth-largest tenant by gross rental income, has terminated its lease at 500 Plaza Drive, Secaucus, New Jersey, United States.

The tenant paid MUST a termination fee of US$4m.

In a bourse filing, MUST said the lease at 500 Plaza Drive was supposed to expire on 31 May 2029, but the tenant decided to end its lease early and vacate the 197,949 square feet of space on 31 May 2024.  

The Children’s Place will still pay rent until the end of its lease.

“The leases include a one-time early termination option, which the tenant has chosen to exercise,” MUST said.

As the fifth largest tenant of MUST, The Children's Place contributes 3.3% of the REIT’s overall gross rental income.

Meanwhile, the REIT’s manager said it is already working to secure new leases to fill the space occupied by The Children's Place.