SAN FRANCISCO– Manulife Financial has purchased Market Center, a 770,000 square foot, Class-A office complex in downtown San Francisco in a deal that closed today. The newest addition to Manulife’s global real estate portfolio marks the Company’s first property investment in the Bay Area.
“Manulife has been looking for opportunities to grow our real estate investment portfolio and we are extremely pleased to be entering the San Francisco market with a significant acquisition like Market Center,” said Kevin Adolphe, Chief Operating Officer of Manulife’s Investment Division. “We identified San Francisco as one of several potential growth areas for our real estate business and we are optimistic about the possibilities in this and other key markets as we continue to look for core office and industrial investment opportunities to complement our portfolio across the United States, Canada and Asia.”
Connected by a large landscaped courtyard, Market Center consists of two office towers: 555 Market Street, a 21-story, 283,000 square-foot building completed in 1965; and 575 Market Street, a 40-story, 487,000 square-foot building added in 1975. The buildings have been extensively renovated and modernized with state-of-the-art systems in the last few years and are in the process of being LEED certified for environmental sustainability.
Most notable for its prime Market Street location, the complex also features immediate access to the Bay Area Rapid Transit system and panoramic views of the skyline and San Francisco Bay, earning Market Center its place as one of the city’s premier office properties.Market Center is approximately 90 per cent leased with a strong roster of national tenants.
“Market Center provides Manulife with the superb combination of a stable, high-quality asset in one of the most vibrant urban markets in the United States,” said Thomas Patton, Regional Director of Manulife’s real estate portfolio in California. “It’s an exceptional addition to our existing portfolio of properties located in diverse regions throughout California, and San Francisco is key to that mix.”
Manulife has a strong and long-standing presence in the California real estate landscape having first entered the market in the early 1970s with properties in Los Angeles and San Diego. Today, Manulife’s California real estate portfolio consists of 18 office and industrial properties, including 865 South Figueroa and 515 South Figueroa, two Class-A office towers which Manulife developed in downtown Los Angeles. The acquisition of Market Center brings Manulife’s real estate portfolio in California to almost five million square feet with a value of approximately US$800 million.
About Manulife Financial's Real Estate Division
Through its Real Estate Division, Manulife Financial is actively involved in the ownership, development and management of commercial real estate. The portfolio includes a diversified mix of prime office and industrial properties in key metropolitan centers throughout Canada, the United States and Asia. In addition to equity real estate, the Real Estate Division manages Manulife Financial’s space requirements and own use facilities to accommodate the Company’s 24,000 employees worldwide. As at June 30, 2010, Manulife Financial’s real estate portfolio totals 29 million square feet and represents a carrying value of Cdn$6.0 billion (US$5.7 billion).
About Manulife Financial
Manulife Financial is a leading Canadian-based financial services group operating in 22 countries and territories worldwide. For more than 120 years, clients worldwide have looked to Manulife for strong, reliable, trustworthy and forward-thinking solutions for their most significant financial decisions. Our international network of employees, agents and distribution partners offers financial protection and wealth management products and services to millions of clients around the world. We provide asset management services to institutional customers worldwide as well as reinsurance solutions, specializing in life and property and casualty retrocession. Funds under management by Manulife Financial and its subsidiaries were $454 billion (US$428 billion) as at June 30, 2010. The Company operates as Manulife Financial in Canada and Asia and primarily as John Hancock in the United States.
Manulife Financial Corporation trades as ‘MFC’ on the TSX, NYSE and PSE, and under ‘945’ on the SEHK. Manulife Financial can be found on the Internet at www.manulife.com
Manulife Financial has purchased Market Center, a 770,000 square foot, Class-A office complex in downtown San Francisco in a deal that closed September 30, 2010. The newest addition to Manulife’s global real estate portfolio marks the Company’s first property investment in the Bay Area.