United Hampshire US REIT (UHREIT) is launching a private placement exercise to raise USD30 million to partially finance its maiden acquisition.
The placement will be made to institutional and other eligible investors at an issue price of between USD0.62 and USD0.64 per unit.
The placement may be upsized to raise an additional USD5.0 million.
UHREIT announced on 5 October that it is acquiring two grocery-anchored retail assets – Penrose Plaza in Philadelphia, Pennsylvania and Colonial Square, Colonial Heights, in Richmond, Virginia.
The total purchase price of the assets is USD78.25 million, comprising USD52.0 million for Penrose Plaza and USD26.25 million for Colonial Square.
This consideration is 3.9% lower than the independent valuation of USD81.45 million.
Post-acquisition, contribution from the REIT’s top 10 tenants will reduce from the current 66.2% to 61.0%.
Accordingly, the enlarged portfolio’s WALE will increase to 8.1 years with 0.9% leases due in 2021 and less than 10.0% of leases due for renewal every year from 2022 to 2025.
The REIT’s full disclosure on the acquisition can be viewed here.
UHREIT was last done on the SGX at USD0.665, which currently implies a distribution yield of 9.17% according to data on the Singapore REITs table.