United Hampshire US Reit gives 2nd extension for divestment due diligence

UNITED Hampshire US Reit's proposed divestment of 2 self-storage properties will be delayed once again as the purchaser is still in the process of carrying out its due diligence on the properties, its manager said in a bourse filing on Tuesday (Mar 29).

On Mar 21, the manager first announced that it was extending the due diligence period till Mar 28 for the proposed sale of the 2 properties - Elizabeth Self-Storage and Perth Amboy Self-Storage.

On Tuesday, the real estate investment trust (Reit) manager said the purchaser "will require more time", so the vendors of the properties have executed a second letter of extension with the purchaser to further extend the due diligence period to Apr 4.

A copy of the second extension letter will be made available for inspection during normal business hours at the registered office of the manager for 3 months from Tuesday, it noted.

The manager, meanwhile, noted that the purchaser is entitled to carry out the due diligence and is entitled to terminate the purchase and sale agreement for "any reason or no reason at all at any time during the due diligence period".

If terminated, the deposit will be refunded to the purchaser. The agreement as well as all rights and obligations of the parties thereunder will be null and void, except for those rights and obligations that expressly survive the termination of the agreement, it added.

In the meantime, there is "no certainty or assurance" that the divestment will be completed or that no changes will be made to the terms thereof. Hence, unitholders are advised to "exercise caution" in respect of their dealings in the units of the Reit, it pointed out.

Units of United Hampshire US Reit closed down 0.8 per cent or US$0.005, at US$0.63 before the announcement on Tuesday.