SINGAPORE (Mar 6): United Hampshire US REIT, Asia’s first US grocery-anchored shopping centre and self-storage REIT, will be offering just 7.5 million units to the public, at 80 US cents ($1.21) per unit. The offer has had strong support from cornerstone Inves­tors, who, together with the sponsors and rollo­ver investors, are taking up 82.2% of the units, investing around US$324.4 million. The total gross proceeds from the IPO will be US$394.6 million from the issue of 493.28 million units.

Of these, the co-sponsors Hampshire Com­panies and a unit of United Overseas Bank will each own 44.39 million units or around 9% each. Rollover investors will own 16.66 million units or 3.4% and cornerstones will own 300 million or 60%.

At the IPO price, the initial yield for this year is projected at 7.4%. The DPU for FY2020 is projected at 4.93 cents including top-ups, and in FY2021, forecast DPU is 6.09 cents includ­ing top-ups, giving a yield of 7.6% on the IPO price. The top-ups are income support for a couple of properties which have not yet stabi­lised. Gearing as at listing date will be 38%. The IPO price is at a small premium of 1.07 times net asset value of 75 US cents. The offer closes on March 10, and the REIT starts trad­ing on March 12.

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