Manulife Real Estate acquires three prime real estate assets in key North American markets

• Acquisitions in Toronto, San Diego and New York City Metropolitan Area total $555 million
• Manulife's global real estate assets grow to C$7.5 billion with new acquisitions
• Brings further portfolio diversification with new geographic markets and segments

TSX/NYSE/PSE: MFC    SEHK:945

TORONTO, Dec. 20, 2011 /PRNewswire/ - Manulife Real Estate, the global real estate arm of Canada-based Manulife Financial Corporation, one of the largest life insurance companies in the world and parent company of John Hancock Financial in the United States, has acquired three new real estate assets totaling $555 million in the core real estate markets of Toronto, San Diego and the New York City Metropolitan Area.

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"Manulife is always looking for opportunities to grow our real estate investment portfolio and we're extremely pleased to secure these exceptional assets in what are three very important and diverse real estate investment markets," said Kevin Adolphe, Chief Operating Officer of Manulife's Investment Division and President and CEO of Manulife Real Estate. "We are optimistic about the possibilities in these and other key markets and we continue to look for core office, industrial and multi-family residential property investments throughout Canada, the United States and Asia."

"Each of these properties is of the highest quality, all extremely well leased with strong tenant rosters, in absolutely superb locations - all the key characteristics of successful real estate investments," added Ted Willcocks, Global Head of Asset Management for Manulife Real Estate.

Together, the new acquisitions bring the value of Manulife's global real estate portfolio to C$7.5 billion, adding scale to its established portfolio in Toronto, broadening its scope in California and marking an entry into the New York City Metropolitan Area. In addition to growing the real estate portfolio and adding further geographic scale and diversification, the Company is looking to expand its multi-family residential holdings in select markets and recently acquired properties in Alexandria, Virginia and New Brunswick, New Jersey.

York Mills Centre, Toronto
York Mills Centre, a 549,000-square-foot, four-building office complex in Toronto, was acquired for C$161 million from Ivanhoé Cambridge in a deal that closed December 12, 2011.

Located in Toronto's north office corridor, York Mills Centre offers direct access to the city's subway system and regional commuter network as well as immediate proximity to Toronto's main highways. The complex consists of 509,000 square feet of Class-A office space and 40,000 square feet of retail space offering a range of service, fitness and dining amenities on two levels. The buildings - two at seven stories, one at six stories, and one at five stories - were constructed in phases, between 1985 and 1992.

Totaling more than seven million square feet, with a value of approximately C$1.9 billion, Manulife's commercial real estate portfolio in Toronto is the largest in the Company's C$7.5 billion global real estate portfolio. The managed portfolio includes 41 office and industrial properties totaling 7.6 million square feet throughout the Greater Toronto Area, most notably the landmark, 1.3 million-square-foot, Manulife Centre mixed-use complex in the city's Bloor-Yorkville district which the Company developed in the early 1970s.

RBC Capital Markets Realty Inc. in Toronto acted as broker on the York Mills Centre transaction.

Seaview Corporate Center, San Diego
Seaview Corporate Center, a 355,800-square-foot, four-building office complex in San Diego was acquired for US$109 million from Pacific Office Properties and Angelo, Gordon & Co. in a deal that closed December 12, 2011.

Located in Sorrento Mesa, the most robust Class-A submarket in San Diego County, Seaview Corporate Center sits atop 18 acres overlooking Sorrento Valley and the Pacific Ocean. On-site amenities include a fitness center with lap pool and basketball and tennis courts. The complex was constructed in phases, between 1983 and 2011, and consists of two office buildings at six stories, one at five stories and one at two stories as well as a four-level parking structure.

Manulife has a longstanding presence in the California real estate landscape, having first entered the market in the early 1970s with properties in San Diego and Los Angeles, including 865 South Figueroa and 515 South Figueroa, two Class-A downtown office towers which Manulife developed in the 1980s. The Company entered the San Francisco market in September 2010 with the acquisition of Market Center, followed with the purchase of Hawthorne Plaza in July 2011, both prime downtown office properties. Today, the Company's California real estate portfolio consists of 29 office and industrial properties totaling almost five million square feet with a value of approximately US$1.2 billion.

Eastdil Secured in San Diego acted as broker on the Seaview Corporate Center transaction.

10 Exchange Place, Jersey City (New York City Metropolitan Area)
10 Exchange Place, a 748,000-square-foot, 30-story office tower in Jersey City, was acquired for US$285 million from an investment group advised by Invesco Real Estate on December 20, 2011.

A trophy office tower and skyline landmark on Jersey City's Hudson River waterfront, 10 Exchange Place was built in 1988. LEED-Gold and Energy Star certified, 10 Exchange Place was the 2011 recipient of "The Outstanding Building of the Year" award in its size category from the Building Owners and Managers Association. The iconic tower offers unobstructed views of lower Manhattan from every floor and direct access to the most comprehensive mass-transit infrastructure in the region, including the PATH rail to New York City, as well as light rail, bus and ferry service.

The acquisition of 10 Exchange Place represents Manulife's entry into the New York City Metropolitan real estate investment market and its second acquisition in New Jersey. The Company purchased a 415-suite multi-family residential complex, Plaza Square, in New Brunswick in December 2010 for US$112.5 million.

Cushman & Wakefield's New York City Metropolitan Area Capital Markets Group acted as broker on the 10 Exchange Place transaction.

About Manulife Real Estate
Manulife Real Estate™, the global real estate arm of Manulife Financial Corporation, is actively involved in the ownership, management and development of commercial real estate. Totaling 31.7 million square feet, Manulife Real Estate's managed portfolio includes a diversified mix of prime office, industrial, residential and retail properties in key metropolitan centers throughout Canada, the United States and Asia. In addition to equity real estate, Manulife Real Estate manages the space requirements and own-use facilities to accommodate Manulife Financial's more than 24,000 employees worldwide. As at September 30, 2011, Manulife's real estate assets represent a carrying value of C$6.9 billion (US$6.7 billion). Additional information about Manulife Real Estate can be found at manuliferealestate.com.

About Manulife Financial
Manulife Financial is a leading Canada-based financial services group operating in 21 countries and territories worldwide. For more than 120 years, clients 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. We provide asset management services to institutional customers worldwide as well as reinsurance solutions, specializing in property and casualty retrocession. Funds under management by Manulife Financial and its subsidiaries were C$492billion (US$473 billion) as at September 30, 2011. 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 manulife.com.

SOURCE Manulife Real Estate