United Hampshire US Reit prices private placement at US$0.63 per unit

UNITED Hampshire US Real Estate Investment Trust (UHReit) ODBU has priced its private placement at the middle of its issue price range at US$0.63 per new unit, it said in a bourse filing on Wednesday.

It will issue about 55.6 million new units to raise gross proceeds of US$35 million. The manager said it had exercised the placement upsize in full "in view of the strong demand".

The issue price represents a discount of 6 per cent to the volume weighted average price (VWAP) of 66.99 US cents per unit and a discount of 3.4 per cent to the adjusted VWAP of 65.24 US cents per unit, for trades done on the preceding market day on Oct 4 up to the time the placement agreement was entered.

Around US$33.8 million of the gross proceeds will be used to partially fund its acquisition of two grocery-anchored freehold assets in Pennsylvania and Virginia, while US$1.2 million will be used to pay the fees incurred in connection with the private placement.

The balance, if any, will be used for general corporate and/or working capital purposes.

On Tuesday, UHReit's managers proposed to acquire Penrose Plaza in Philadelphia, Pennsylvania and Colonial Square Shopping Center, Colonial Heights in Richmond, Virginia for US$78.3 million. It said it would finance the acquisitions with a combination of loans and proceeds from the private placement.

The new units are issued pursuant to a general mandate given to UHReit's managers at its annual general meeting on Apr 28, 2021 that allows the Reit to issue new units - provided the number of new units do not exceed 50 per cent of the total number of units in issue.

UHReit expects trading of the new units to commence on the Singapore Exchange on Oct 14 at 9am.

Units of the Reit closed at 66.5 US cents on Monday, down 0.5 cent or 0.8 per cent, before it called for a trading halt on Tuesday morning. Its units will resume trading on Wednesday.

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