United Hampshire US REIT acquires Pennsylvania shopping centre for US$85.7 mil

By The Edge Singapore / The Edge Singapore | June 10, 2022 10:36 AM SGT
Photo of Upland Square Shopping Centre (Photo: United Hampshire US REIT)
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SINGAPORE (EDGEPROP) - United Hampshire US REIT is acquiring a new asset for US$85.7 million ($118 million), 0.3% off an independent valuation.
The asset, the Upland Square Shopping Centre, will help increase its pro forma distribution per unit by 2.13% from 6.23 US cents from 6.1 US cents, and to also grow its portfolio value by 6% to US$730.1 million.
“Given its larger distributable income base, Upland Square is set to substantially enhance UHREIT’s income visibility and resilience,” says Robert Schmitt, CEO of the REIT’s manager.
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This acquisition is the second for UHREIT in Pennsylvania, further extending its footprint in the affluent Eastern seaboard. The REIT plans to pay for this acquisition using proceeds from a recent divestment, plus internal funds and a loan.
The freehold property has a net lettable area of approximately 400,674 sq ft, with a committed occupancy rate of 100% and a long forward committed WALE of 6.3 years.
The property has 35 tenants, including the anchor, Giant by Ahold Delhaize, a leading supermarket operator in the Mid-Atlantic region of the US.
The acquisition will lift the committed occupancy of UHREIT’s portfolio to 96.6%, its highest since its IPO in March 2020.
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Post-acquisition, UHREIT’s contribution from its top 10 tenants will reduce from the current 60.2% to 56.8%, providing increased tenant diversification and stabilising the portfolio’s income.
The enlarged portfolio will also benefit from lower lease expiries in 2023 and 2024, with less than 10% of leases due for renewal every year from 2023 to 2026.
The enlarged portfolio will also benefit from lower lease expiries in 2023 and 2024, with less than 10% of leases due for renewal every year from 2023 to 2026.
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There is minimal impact on portfolio WALE, which will decrease marginally from 7.8 years to 7.7 years.
This article first appeared on The Edge Singapore.

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