United Hampshire US REIT's public tranche for IPO 1.4 times subscribed

Uma Devi
Uma Devi3/12/2020 12:13 PM GMT+08  • 2 min read
United Hampshire US REIT's public tranche for IPO 1.4 times subscribed
The manager says that the REIT’s placement tranche attracted strong interest from investors including sovereign wealth funds, long-only institutional investors, insurance firms, multi-strategy funds and family offices.
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SINGAPORE (Mar 12): The manager of United Hampshire US REIT reported on Wednesday that the public tranche of its initial public offering (IPO) has been 1.4 times subscribed.

United Hampshire US REIT is Asia’s first US grocery-anchored shopping center and self-storage REIT with a portfolio primarily concentrated in the Northeast markets of the US.

The close of the offering at 12 noon on Mar 10 saw 848 valid applications for some 10.3 million units, amounting to approximately $11.5 million, the group reported in a regulatory filing on Wednesday. This represented a subscription rate of 1.4 times.

United Hampshire US REIT had launched its IPO on Mar 3, putting forth 87.8 million units for a price tag of 80 US cents ($1.12) apiece.


See: United Hampshire US REIT launches Singapore IPO at $1.12 per unit

The REIT’s international placement of 80.3 million units to investors outside of the US garnered indications of interest in excess of US$220.1 million, translating into 3.4 times the value of the placement tranche available for subscription.

Based on the 87.8 million units available for subscription under the offering, the offer was 3.2 times subscribed based on the indications of interest received, valid acceptances and valid applications for the units.

The manager says that the REIT’s placement tranche attracted strong interest from investors including sovereign wealth funds, long-only institutional investors, insurance firms, multi-strategy funds and family offices such as The Government Pension Fund of Thailand and Principal Asset Management, each of which had subscribed for and has been allocated more than 5% of the offered units.

“We are very pleased with the strong support that we have received from the cornerstone, institutional and retail investors. This reflects the confidence and faith that they have in our unique portfolio which we believe is recession resistant and cycle-agnostic, and which provides a stable cash flow from long leases with strong leasing momentum,” saysRobert Schmitt, chief executive officer of the manager.

“Going forward, we will focus on enhancing the REIT’s portfolio through yield accretive acquisitions and asset enhancement initiatives to generate sustainable long-term distribution growth for all our unitholders,” he adds.

Trading for United Hampshire US REIT units are expected to commence on Thursday at 2pm.

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