Barely a few days after Manulife Reit announces their Q1FY19 quarterly results which I covered here, they announces an M&A for two towers of Centerpointe I & II, which is South of Virginia (about 30 minutes from Washington DC). The acquisition of these freehold properties is at the implied cap rate of 7.55% for a Class A commercial, which makes it an easy accretive target deal for them based on their current valuation. The purchase price is $122m, which is about a tenth of their current market cap, so they didn't really need a lot of funding to buy this. The properties are leased at 94% occupancy rate at a nice long WALE of 6.9 years but we already know that deals typically in the US are based on long term, then subject to annual escalation.
Management is looking to raise approximately $94m by issuing 114m unit shares private...