6 INVESTMENT PROPERTIES (CONT'D) Asset held for sale Description of property Tenure Location Existing use Appraised value 2024 2023 US$’000 US$’000 Group New Jersey Plaza Freehold 500 and 600 Plaza Drive, Secaucus, Hudson County, New Jersey 07094 Commercial 43,700 − Pursuant to the Disposition Mandate, during the financial year ended 31 December 2024, the Group completed the divestment of the investment property named Capitol for US$117.0 million less seller credits, to an unrelated third-party purchaser on 28 October 2024 (U.S. time). In addition, the Manager announced the divestment of Plaza on 20 February 2025 for US$51.8 million less seller credits, and the sale was completed on 25 February 2025 (U.S. time). This property with carrying amount of US$43.7 million (2023: US$58.0 million) was classified as asset held for sale in the Group’s statement of financial position as at 31 December 2024. Please refer to divestment announcement and completion announcement dated 20 February 2025 and 26 February 2025 for more information on the sale. During the financial year ended 31 December 2023, the Group completed the divestment of the investment properties named Tanasbourne for US$33.5 million and Park Place for US$98.7 million to John Hancock Life Insurance Company (U.S.A.), an indirect wholly-owned subsidiary of the Sponsor on 11 April 2023 (U.S. time) and 15 December 2023 (U.S. time), respectively. As set out in Note 2.3, the Group is required to procure, the sale of the Group’s properties prioritised by specified tranches, and to achieve minimum cumulative net sale proceeds targets by specified dates (i.e., the 2024 Net Proceeds Target and the 2025 Net Proceeds Target) under the terms and conditions of the Recapitalisation Plan and Master Restructuring Agreement. The minimum cumulative net sale proceeds shall be made up from the sale of up to four of the following assets, being Centerpointe, Diablo, Figueroa and Penn (collectively, the “Tranche 1 Assets”) and Capitol, Exchange, Peachtree and Plaza (collectively, the “Tranche 2 Assets”), of which not more than two may be Tranche 2 Assets. Under the Master Restructuring Agreement, the sale of Michelson and/or Phipps is subject to the necessary consents under each of the respective facility agreements. As the 2024 Net Proceeds Target had not been achieved, the Group is required to pay a fee of US$2.3 million, based on the higher of (A) a flat fee of 1% on the shortfall amount between the 2024 Net Proceeds Target and the cumulative net sale proceeds actually received, and (B) an additional interest margin payment, at a rate of 0.75% per annum on the outstanding amounts under the existing facilities as at 31 December 2024 for a period of 180 days. For details, please refer to the key terms of the Recapitalisation Plan in paragraph 3.1 of the circular dated 29 November 2023, and the announcement on “Update On Restructuring Of The Existing Facilities” dated 13 December 2023. Details on the Group’s plans, progress and expectations in meeting the 2025 Net Proceeds Target, and the implications of not meeting the 2025 Net Proceeds Target are disclosed in Note 2.3. 166 | MANULIFE US REIT NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 December 2024
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