11 of 12 Manulife REIT’s lenders obtain approvals for recapitalisation plan

The remaining lender is pending final board approval.

Eleven of the 12 lenders of Manulife REIT have received approvals in relation to the REIT’s plan to restructure its existing facilities.

Manulife REIT has earlier unveiled a recapitalisation plan to address its breach of financial covenants.

In 1H23, MUST’s portfolio valuations declined by 14.6% to US$1.6b, resulting in the REIT breaching a financial covenant in its existing loan facilities requiring the percentage of its consolidated total unencumbered debt to consolidated total unencumbered assets to be not more than 60%.

In a bourse filing, the REIT announces amendments to key terms of the recapitalisation plan, including items 5(c), 5(d), 5(e), and 11.