A Singapore-based office REIT has struck a deal to sell a 28-story Midtown office tower for more than 20% less than its 2016 purchase price.
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Manulife US REIT announced Monday that it has agreed to sell the 585K SF 1100 Peachtree skyscraper for $133.8M. While the buyer wasn't identified in a news release, the Atlanta Business Chronicle reported that Spear Street Capital had the tower under contract.
Manulife plans to use the proceeds of the sale, which still needs approval from its lenders, to make an early repayment on its 2026 debts, the company said. Manulife is selling 1100 Peachtree to uphold a 2023 agreement with 12 of its lenders to sell assets and avoid defaulting on $1.2B in debt.
Under the agreement, Manulife has to achieve net sales of $328.7M by June 30, 2026.
“The sale of Peachtree will enable us to reduce a substantial portion of our 2026 debts and achieve 82% of the net sales proceeds target under the Master Restructuring Agreement, putting MUST in a stronger position to negotiate a path for recovery and growth with its lenders,” Manulife CEO John Casasante said in a press release. “We remain in active discussions on the divestment of additional properties. In view of current headwinds, we believe that disposing Peachtree would enable us to mitigate risks and achieve the best possible outcome for Unitholders.”
Manulife’s American affiliate, John Hancock Life Insurance Co., first purchased 1100 Peachtree in 2007 for $153.8M, according to Fulton County records. In 2016, it transferred ownership to Hancock S-REIT ATL Corp. for $175M.
Fulton County pegged the value of the tower at $140M last year. As of December, 1100 Peachtree was 77% occupied, with the law firm Kilpatrick Townsend & Stockton occupying more than 140K SF, according to the ABC.
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