Mapletree Pan Asia Commercial Trust Announces Divestment of Festival Walk Tower Office Component

Key Highlights

• Divestment Deal: Mapletree Pan Asia Commercial Trust (“MPACT”), managed by MPACT Management Ltd., has agreed to sell Festival Walk Tower, the office component of Festival Walk in Hong Kong, for HKD1,960.0 million (S\$328.1 million). The buyer is an unrelated third party, and the transaction is set to be completed by February 2026.
• Valuation: The divestment price matches the property’s independent valuation as of 30 November 2025. The valuation was conducted by Knight Frank Petty Limited using both discounted cash flow and term and reversion methods.
• Recent Portfolio Actions: This move follows MPACT’s divestment of two Japan office buildings in August 2025, demonstrating continued portfolio optimisation and agility in response to market conditions.
• Financial Impact: Proceeds from the sale will be used for debt reduction, improving MPACT’s aggregate leverage from 37.6% to approximately 36.5% (assuming proceeds are directed toward debt reduction by 30 September 2025).
• Portfolio Update: After the sale, MPACT will own 15 commercial properties across five key Asian gateway markets, with a total lettable area of 10.2 million square feet valued at S\$15.6 billion. Singapore remains the REIT’s core market, contributing approximately 65.8% of net property income and 58.0% of assets under management.

Details of the Divestment

• Festival Walk Tower: The office asset being divested comprises 213,982 square feet of lettable area across seven tenants, with a committed occupancy of 94.2% as of 30 September 2025.
• Historical Purchase Price: The asset was purchased at HKD2,331.9 million (S\$406.1 million) based on valuations at the time of MPACT’s merger with Mapletree North Asia Commercial Trust in 2021.
• Rationale: The sale is part of MPACT’s strategic focus on quality assets and prudent management amid macroeconomic headwinds in Greater China. The divestment is designed to strengthen the stability of MPACT’s portfolio and enhance financial flexibility for future opportunities.
• Impact on Financials: The divestment is not expected to materially affect MPACT’s net asset value (as at 31 March 2026) or net property income for FY25/26.

Festival Walk After Divestment

• Remaining Assets: MPACT will retain full ownership and operations of the Festival Walk retail mall (the key component), which boasts a lettable area of 588,890 square feet and was independently valued at HKD21,777.0 million (S\$3,742.4 million) as at 31 March 2025.
• Retail Mall Performance: The retail mall had a committed occupancy close to 100% as at 30 September 2025, underscoring its robust performance and importance within MPACT’s portfolio.

Strategic Implications for Investors

• Portfolio Optimisation: The divestment reflects MPACT’s continued commitment to optimising its portfolio and responding to shifting market conditions in Greater China and the broader region.
• Financial Flexibility: Reducing leverage through divestment proceeds positions MPACT to better weather economic uncertainties and potentially pursue new growth opportunities.
• Potential Price Sensitivity: The sale price is significantly below the historical purchase price, which may be viewed as a recognition of current market values in Hong Kong’s commercial property sector. Investors should note the impact on valuation trends and possible sentiment towards MPACT’s Hong Kong assets.
• Focus on Core Markets: With Singapore contributing the majority of net property income and assets under management, MPACT is doubling down on its most stable market, which could reassure investors seeking long-term stability.

About MPACT

Mapletree Pan Asia Commercial Trust is a Singapore-listed REIT focused on income-producing commercial real estate in key gateway markets across Asia, including Singapore, Hong Kong, China, Japan, and South Korea. Its portfolio now spans 15 properties with a total lettable area of 10.4 million square feet, independently valued at S\$15.9 billion.

Contact Information

Investor Relations: Teng Li Yeng
Tel: +65 6377 6836
Email: [email protected]
Website: www.mapletreepact.com

Disclaimer

This article is for informational purposes only and does not constitute an offer, solicitation, or recommendation to buy or sell securities in Mapletree Pan Asia Commercial Trust. Past performance is not indicative of future results. The information herein may contain forward-looking statements, which are subject to risks, uncertainties, and assumptions that may cause actual results to differ materially. Investors should consult their own professional advisors before making investment decisions. MPACT and its Manager disclaim any liability for losses arising from reliance on the information provided.

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