Manulife US REIT lives to fight another day following EGM vote

Manulife US REIT gets a new lease of life as unitholders voted overwhelmingly for all three resolutions which were interdependent

Manulife US REIT's unitholders voted overwhelmingly for all three resolutions.  Resolution 1 was the sale of Park Place to the sponsor for US$98.7 million.

Resolution 2- over which there was much debate - was to approve the sponsor loan of US$137 million at an interest rate of 7.25% a year with a success fee of 21.1%. This was the most contentious of the three resolutions.

Resolution 3 was also controversial as it provided the manager and the lenders with the authority to divest 'non-core' properties, albeit at a minimum sum of US$328.7 million.

The three resolutions were interdependent and all three had to be passed for MUST to survive.

Proxy advisors Glass Lewis and ISS had recommended that unitholders vote FOR all three resolutions which they did. For resolutions 1, 97.74% of unitholders voted FOR. Similarly, 97.55% voted FOR resolution 2 and 98.07% voted for resolution 3. 

The affirmative vote was overwhelming despite a couple of last minute tweaks announced on Dec 13. These included that any sale at levels below the pre-approved pricing for the non-core assets would require the consent of the lenders and the sponsor-manager.

See Also:

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