Manulife Real Estate acquires portfolio of five commercial properties in Quebec
Acquisition of 440,297-square-foot portfolio brings immediate diversification in greater Montreal and added scale to Manulife Canadian Property Portfolio, a core open-end real estate investment fund
Montreal, QC – Manulife Real Estate has acquired a portfolio of five commercial real estate properties, totaling 440,297 square feet and located primarily in the greater Montreal region, for C$75.9 million from the Redbourne Realty Fund, in a deal that closed June 13, 2013. The portfolio, comprising three office properties and two industrial properties, was purchased for its Manulife Canadian Property Portfolio, a core, open-end, income producing real estate investment fund that invests in quality Canadian commercial real estate assets managed by Manulife Real Estate. The Fund is offered to institutional investors through Manulife Asset Management, the global asset management arm of Manulife Financial.
“Manulife is pleased to be able to put our long established real estate expertise to work in a fund platform that allows investors to take advantage of what has been a sound asset class for the Company for the last seven decades,” said Kevin Adolphe, Global Head of Private Asset Management for Manulife Financial and President and CEO of Manulife Real Estate. “We’ve had great interest in our fund platform since it launched in February 2011 and we’re encouraged by the significant capital we’ve raised to date for the Manulife Canadian Property Portfolio. We are well positioned for continued growth.”
The Manulife Canadian Property Portfolio invests in quality commercial real estate assets in stable and economically-diverse markets across Canada. With this acquisition, the Manulife Canadian Property Portfolio holds 19 income producing properties totaling approximately 2.7 million square feet with assets under management of C$422 million.
“Montreal is a market we know well and these properties are an excellent complement to the Manulife Canadian Property Portfolio,” added Mr. Adolphe. “The acquisition is completely in line with the Fund’s strategy to provide institutional investors with an opportunity to invest in a quality, diversified property portfolio that offers income stability while also preserving capital.”
Manulife Real Estate, the global real estate arm of Manulife Financial, serves as the asset manager for the Manulife Canadian Property Portfolio which launched in February 2011, extending to investors the benefit of Manulife’s extensive real estate investment and management experience. Today, Manulife’s global real estate portfolio totals more than 36 million square feet, with more than 1.2 million square feet, owned or managed, in Montreal, including Centre ManuVie which Manulife developed in 1982.
RBC Capital Markets Real Estate Group acted as broker on the transaction.
Notice to Investors
This communication is not, and under no circumstances is to be construed as an invitation to make an investment in the Fund nor does it constitute a public offering to sell units of the Fund. Subscriptions for units of the Fund will only be considered on the terms of the Offering Memorandum (the “OM”) of the Fund. Units of the Fund are only available for purchase by “accredited investors”, as such term is defined under applicable Canadian securities legislation. Purchasers may have statutory or contractual rights of action under certain circumstances as disclosed in the OM. An investment in units of the Fund is subject to certain risks and is appropriate only for investors who have the capacity to absorb a loss of some or all of their investment. There is no market through which units of the Fund may be sold and none is expected to develop. Under certain circumstances, the Fund is entitled to suspend or restrict rights of redemption. An investment in units of the Fund is not intended as a complete investment program. An investment in units of the Fund should only be made after consultation with independent investment and tax advisors. Only investors who do not require immediate liquidity of their investment should consider the purchase of units of the Fund. Only investors who can reasonably afford a substantial impairment or loss of their entire investment should consider the purchase of Units of the Fund. Please refer to the OM for a further discussion of the risks of investing.
About Manulife Real Estate
Manulife Real Estate™ is the global real estate arm of Manulife Financial Corporation with fully integrated in-house capabilities and 70 years of experience as an active investor, owner, developer and asset manager of commercial real estate. Diversified by both geography and asset type, the portfolio consists primarily of prime office and industrial properties, as well as select retail and multi-family residential properties, in key metropolitan centers throughout Canada, Asia and in the United States, through Manulife’s U.S. division, John Hancock. In addition to equity real estate, Manulife Real Estate manages the space requirements and own use facilities for Manulife’s operations around the world. In 2011, Manulife Real Estate launched a new real estate fund platform, extending the benefit of its long established real estate asset management expertise to institutional investors. As at March 31, 2013, the Manulife Real Estate portfolio totaled more than 36 million square feet with a market value of C$9.3 billion (US$9.2 billion). Additional information about Manulife Real Estate can be found at manuliferealestate.com.
About Manulife Asset Management
Manulife Asset Management is the global asset management arm of Manulife Financial. Manulife Asset Management provides comprehensive asset management solutions for institutional investors and investment funds in key markets around the world. Manulife Asset Management also provides investment management services to affiliates’ retail clients through product offerings of Manulife and John Hancock. This investment expertise extends across a broad range of asset classes including equity, fixed income and alternative investments such as real estate, timber, farmland, as well as asset allocation strategies.
Manulife Asset Management has offices with full investment capabilities in the United States, Canada, the United Kingdom, Japan, Hong Kong, Singapore, Taiwan, Indonesia, Thailand, Vietnam, Malaysia, and the Philippines. In addition, it has a joint venture asset management business in China, Manulife TEDA. It also has operations in Australia, New Zealand, Brazil and Uruguay. John Hancock Asset Management, Hancock Natural Resource Group and Declaration Management and Research are units of Manulife Asset Management. As at March 31, 2013, assets under management were C$252 billion. Additional information about Manulife Asset Management can be found at manulifeam.com.
About Manulife Financial
Manulife Financial is a leading Canada-based financial services group with principal operations in Asia, Canada and the United States. Clients look to Manulife for strong, reliable, trustworthy and forward-thinking solutions for their most significant financial decisions. Our international network of employees, agents and distribution partners offers financial protection and wealth management products and services to millions of clients. We also provide asset management services to institutional customers. Funds under management by Manulife Financial and its subsidiaries were C$555 billion (US$$547 billion) as at March 31, 2013. The Company operates as Manulife Financial in Canada and Asia and primarily as John Hancock in the United States.
Manulife Financial Corporation trades as ‘MFC’ on the TSX, NYSE and PSE, and under ‘945’ on the SEHK. Manulife Financial can be found on the Internet at manulife.com.