United Hampshire US REIT *Official* (SGX:ODBU)

[Shion]

United Hampshire US Reit lodges preliminary prospectus

https://www.businesstimes.com.sg/co...mpshire-us-reit-lodges-preliminary-prospectus

UNITED Hampshire US Real Estate Investment Trust (Reit) has lodged a preliminary prospectus to list a US-focused Singapore Reit on the Singapore Exchange, the Reit manager said on Tuesday.

United Hampshire US Reit has a portfolio of 22 properties on the east coast of the US, consisting of 18 grocery and necessity-based retail properties and four self-storage properties.

The portfolio has an occupancy of 95.2 per cent as at Sept 30, and the grocery and necessity-based properties have a long weighted average lease expiry by base rental income of 8.4 years. Tenants include some of the largest grocers, wholesalers, home improvement retailers and discount retailers in the US, such as Walmart, LA Fitness, Home Depot and Lowe's Companies.

All but one of the properties are freehold, and the recession-resistant, cycle-agnostic nature of grocery and necessity retail and self-storage as well as growth in consumption in the US give the portfolio a "balance of defensive attributes", the manager said.

The initial portfolio has an aggregate net lettable area of approximately 3.17 million square feet and an appraised value of approximately US$599.2 million.

Projected distributable income for the Reit is US$24.5 million in the 10 months from March 1 to Dec 31, 2020, and US$30.5 million in 2021. Net property income is forecast to be US$33.3 million for the 10-month period in 2020 and US$41.7 million in 2021.

The Reit's two units in issue before the offering are held by the Reit manager and Gerard Yuen Wei Yi, who is the Reit manager's chief financial officer.

Cornerstone investors include Kuang Ming Investments, Kasikorn Asset Management, Bangkok Life Assurance Public, and Chiu Hong Keong and Khoo Yok Kee, managing director and executive director respectively of Malaysian piling and foundation specialist Pintaras Jaya Berhad.

The Reit manager's board of directors includes former StarHub CEO Tan Tong Hai as independent chairman.

The Reit's two sponsors are UOB Global Capital, a subsidiary of UOB, and Hampshire US Holdco, a subsidiary of The Hampshire Companies.

 

[SpeedingBullet]

又來了.........

 

[starbugs]

It is interesting how "necessity retail" is a term invented by real estate people to sell properties. The term is not used in the retail industry itself.

 

[Shion]

analysis from online sources

https://frugalyouthinvestsg.wordpre...us-reit-ipo-analysis-the-ultimate-safe-haven/

 

[5408854088]

United Hampshire US REIT IPO: What Singaporean Investors Should Know
https://blog.seedly.sg/united-hampshire-us-reit-ipo/?amp=1

 

[angelichound]

This reit is not as good as Elite Commercial

 

[Shion]

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

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

https://www.theedgesingapore.com/ca...shire-us-reit-launches-singapore-ipo-112-unit

SINGAPORE (Mar 3): The manager of United Hampshire US Real Estate Investment Trust has registered the prospectus for the proposed offering and listing of units of the REIT on the Mainboard of the Singapore Exchange (SGX).

Based on the offering price of US$0.80 ($1.12) per unit, United Hampshire US REIT offers a distribution yield of 7.4% in Forecast Period 2020 (FP2020) – the 10-month period from Mar 1, to Dec 31, 2020.

Distribution yield growth is expected to be 2.7% higher at 7.6% for Projection Year 2021 (PY2021) ending Dec 31, 2021.

Subject to the over-allotment option, the offering comprises an international placement tranche of around 80.33 million units to investors outside the US, and a Singapore public offer of some 7.5 million units.

Concurrently with, but separate from the offering, affiliates and a subsidiary of the sponsors have entered into a separate subscription agreements to subscribe for a total of 88.79 million sponsor units at the offering price.

Together, the sponsors – UOB Global Capital and The Hampshire Companies – have over 10 years of long standing partnership, having jointly formed three funds with combined assets under management (AUM) of approximately US$1.1 billion.

In addition, cornerstone investors have also entered into separate subscription agreements to subscribe for an aggregate of 300 million cornerstone units at the offering price.

Further, rollover investors Davinia Investments and Steamboat Apollo have also entered into separate subscription agreements to subscribe for an aggregate of 16.66 million rollover units at the offering price.

“We are pleased to have received strong support from cornerstone and institutional investors for our offering. This is a clear indication of confidence in US consumption growth and our unique portfolio of assets which serves two recession-resistant, cycle-agnostic sectors focused on necessity consumption that are amongst the most stable sectors in the country,” says Robert Schmitt, CEO of the manager.

In total, gross proceeds of approximately US$394.6 million are expected to be raised from the offering, the issuance of the sponsors units, the cornerstone units and the rollover units.

The public offer for United Hampshire US REIT – Asia’s first US grocery-anchored shopping centre and self-storage REIT – will open at 9am on Wednesday (Mar 4), and close at 12 noon on Mar 10.

Trading in the units of United Hampshire US REIT is expected to commence at 2pm on Mar 12.

The REIT’s initial portfolio of 22 assets comprises 18 predominantly freehold grocery-anchored and necessity-based retail properties, as well as four modern, climate-controlled self-storage facilities.

The properties are primarily concentrated in the densely populated and affluent Northeast markets of the US.

The predominantly freehold quality portfolio has an appraised value of approximately US$599.2 million and an aggregate net lettable area (NLA) of approximately 3.17 million sq ft.

The REIT’s distinctive portfolio enjoys a high existing occupancy of 95.2%, backed by a strong tenant base which include some of the largest grocers, wholesalers, home improvement retailers, and discount retailers in the US.

It has a long weighted average lease expiry (WALE) of 8.4 years by base rental income (BRI), with the top 10 tenants contributing 66.7% of BRI in September 2019.

The leases are almost all “triple net” leases, with tenants responsible for their pro-rata share of all real estate taxes, building insurance, property expenses, and common area operating.

“These properties, which are e-commerce resistant in nature, have a balanced lease expiry profile and high occupancy, offering stable and sustainable cash flows that aims to drive resilient and stable distributions for unitholders, while we leverage on our sponsors’ joint sector and regional expertise as well as financial strength,” says Schmitt.

United Hampshire US REIT is expected to have an aggregate leverage ratio of approximately 37.0% as at listing date.

The REIT’s distribution policy is to distribute 100% of its annual distributable income up to the end of PY2021. The distributions will be declared in US dollars.

Unitholders are subject to a maximum withholding tax rate of 30% on income they derive from US investments. Hence, unitholders must comply with certain documentation requirements in order to be exempted from certain withholding tax.

“United Hampshire US REIT benefits from the synergies and competencies of our sponsors, the financial backing of the UOB Sponsor together with the Hampshire Sponsor’s extensive experience in the US real estate sector,” says Tan Tong Hai, chairman of the manager.

“The combined strength of our sponsors will provide a solid growth platform for the REIT,” he adds. “Our value proposition has resonated well with institutional investors and we are looking forward to a similar strong take-up by retail investors.”

 

[Merg91]

Yes meh?
SSI warriors said Elite was not a buy.

This reit is not as good as Elite Commercial

 

[Merg91]

We should know?

https://thesmartinvestor.com.sg/4-things-you-should-know-about-new-hampshire-us-reit/

 

[Merg91]

https://financialhorse.com/united-hampshire-us-reit-ipo-review-recession-proof-supermarket-reit/

 

[tetat_ic]

That's right! Elite Commercial REIT was a good buy! Probably the best performing REIT IPO in a while. Good yield, great currency exposure, excellent WALE and tenant, freehold. Just wished I bought more.

 

[DarkStarer]

going to dip some funds into this one.
looks promising and financials look good. resistant to economy changes, like the singaporean sheng siong. got zombie attack also need to eat and store funds.

 

[angelichound]

That's right! Elite Commercial REIT was a good buy! Probably the best performing REIT IPO in a while. Good yield, great currency exposure, excellent WALE and tenant, freehold. Just wished I bought more.

It was grossly oversubscribed, and i only 10% of what i subscribed.

 

[angelichound]

Yes meh?
SSI warriors said Elite was not a buy.

Personally I feel Elite is better than this united Hampshire.

I don't really like its self storage properties.

 

[Paul Lee]

Personally I feel Elite is better than this united Hampshire.

I don't really like its self storage properties.

Actually, when it comes to investment, it really helps if you can put your personal feelings aside for the brand and just based your decision on the fundamentals.

Whether you like self-storage properties or not is not important. What is important is whether the fundamentals of the properties is sustainable or not in the long run.

In the context of Self-Storage, I think maybe Singaporean has little exposure to its potential. In the US, its huge or else you won't get the deluge of reality shows based on abandoned self-storage units. So I think it's not a bad asset class to invest in.

 

[angelichound]

Actually, when it comes to investment, it really helps if you can put your personal feelings aside for the brand and just based your decision on the fundamentals.

Whether you like self-storage properties or not is not important. What is important is whether the fundamentals of the properties is sustainable or not in the long run.

In the context of Self-Storage, I think maybe Singaporean has little exposure to its potential. In the US, its huge or else you won't get the deluge of reality shows based on abandoned self-storage units. So I think it's not a bad asset class to invest in.

My reason for not liking self storage property is solely based on the fact that self storage property are over supplied in the US. Literally popping up like mushroom.

 

[Pocoyoz]

Will be submarine anot?

Sent from Amazon using GAGT

 

[angelichound]

Will be submarine anot?

Sent from Amazon using GAGT

given the current outlook in SGX it may open lower then IPO


Out of the 38 REITS listed. 37 drop, and 1 no transaction

 

[DarkStarer]

Managed to get some.
Huat Ah!

 

[Pocoyoz]

Managed to get some.
Huat Ah!

Based on 7,500,000 Units available to the public for
subscription and valid applications received for 10,303,900 Units, excluding applications by connected persons and persons mentioned in Rule 240 of the Listing Manual, the Singapore Public Offer was approximately 1.4 times subscribed.
Based on the 87,829,600 Units available for subscription under the Offering, the Offering was approximately 3.2 times subscribed


everyone get something