United-Hampshire US REIT, a U.S.-based real estate investment trust (REIT) with interests in grocery-anchored retail centers and self-storage, recently listed an initial public offering (IPO) on Singapore Exchange Ltd., the Singapore stock exchange. The REIT offered nearly 88 million shares at 80 cents per unit on March 11, though shares have been trading around 64 cents due to market reaction to the coronavirus outbreak. Sponsored by New Jersey-based real estate investment firm Hampshire Cos. LLC and global asset-management firm UOB Global Capital LLC, United-Hampshire’s 22-property portfolio comprises 3.17 million square feet. It includes 18 shopping centers and four self-storage facilities.
The self-storage portion comprises 306,656 square feet in three existing facilities and one under development, which is expected to be complete this quarter. The New Jersey properties are in Carteret (73,775 square feet), Elizabeth (80,575 square feet), Millburn (80,918 square feet) and Perth Amboy (71,388 square feet). The oldest of the four was completed in March 2018. Each is managed by U.S. REIT and third-party management firm Extra Space Self Storage Inc. and branded under its name.
“As the self-storage assets are primely located in markets with accelerating population growth and higher median incomes, we feel that these assets further accentuate the attractiveness of the REIT to foreign investors,” said Robert Schmitt, CEO of United-Hampshire US REIT Management Pte. Ltd., which oversees the REIT.
The IPO listing makes United-Hampshire (traded under OBDU) the first REIT in Asia to offer a U.S.-based diversified portfolio of retail centers and self-storage, and the sixth U.S. REIT to list on the Singapore exchange, according to “The SpareFoot Storage Beat,” a self-storage industry blog. Proceeds from the IPO will be used to recapitalize the entire portfolio, which has an appraised value of $599.2 million, the United-Hampshire website states.
“Moving forward, we will continue to look for opportunities to grow the portfolio through the acquisition of best-in-class grocery and necessity-anchored retail and strategically located self-storage assets that meet our investment criteria,” Schmitt said.
Since 2008, UOB Global and the Hampshire Cos. have formed three funds together, with combined assets under management of approximately $1.1 billion. The partnership is focused on U.S. real estate investment opportunities, according to the United-Hampshire website.
Based in Morristown, N.J., Hampshire Cos. has repositioned or developed more than 30 self-storage facilities with an aggregate value of more than $440 million since 2012. Founded in 1976, it has a diversified investment platform that includes self-storage, industrial, medical, office and retail properties primarily in Northern New Jersey.
Founded in 1998, UOB Global is an originator and distributor of private equity, hedge funds, fixed income and real estate products, as well as the global asset-management subsidiary of UOB, a bank in Asia. As of Nov. 30, 2019, it had $3.2 billion in assets under management. The company has offices in New York and Paris, along with representation at UOB’s bank headquarters in Singapore.
Sources:
SpareFoot Storage Beat, COVID-19 Provides Headwind for United-Hampshire’s Debut on Singapore Exchange
United-Hampshire US REIT, Website
