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Mapletree Pan Asia Commercial Trust has agreed to sell the Festival Walk Tower in Hong Kong for HKD 1.96 billion, matching its latest valuation. The Singapore-listed REIT, backed by Temasek, said the divestment aligns with its strategy to streamline the portfolio amid a weak Greater China office market. The cash proceeds will be used to reduce debt, lowering gearing to about 36.5%. The move follows two office exits in Japan earlier this year. MPACT will continue to own the Festival Walk retail mall, which remains nearly fully leased. After the sale, the REIT's portfolio will include 15 commercial assets across Asia, with Singapore contributing most of its income.
Mapletree Pan Asia Commercial Trust confirmed earlier this week that it will divest the Festival Walk Tower in Hong Kong for HKD 1.96 billion (USD 252 million). The Singapore-listed REIT, backed by Temasek Holdings, said the deal aligns with its ongoing portfolio optimisation strategy, given the subdued office market in Greater China. The sale price matches the asset’s latest independent valuation, and the transaction will be settled entirely in cash, with completion targeted for February. Advertisement
According to disclosures, Temasek holds about 56.7% of the REIT. The divestment follows two office exits in Japan earlier this year, reflecting the manager’s efforts to streamline its commercial holdings and strengthen financial resilience. Proceeds from the Hong Kong sale will be used to reduce borrowings, a move expected to lower gearing to roughly 36.5% from the current 37.6%.
Market analysts have noted that landlords across Hong Kong and mainland China continue to face weakened leasing sentiment, prolonged economic uncertainty and evolving corporate space requirements. These conditions have prompted several owners to reassess capital deployment strategies and offload non-core assets.
MPACT will retain complete ownership of the Festival Walk retail mall, which is nearly fully occupied and valued at HKD 21.78 billion. Upon completion of the sale, the REIT’s portfolio will comprise 15 commercial assets across Singapore, Hong Kong, China, Japan and South Korea, with Singapore contributing close to two-thirds of its net property income.
Source - Reuters
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