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United Hampshire US Reit's Singapore IPO 1.4 times subscribed

THE initial public offering (IPO) for United Hampshire US Reit, the first retail real estate investment trust (Reit) with US exposure here, was oversubscribed, it said in an exchange filing on Wednesday.

The Singapore public offer attracted 848 valid applications for 10.3 million units, while 7.5 million units were available to the public for subscription, representing a subscription rate of 1.4 times.

Its international placement of 80.3 million units to investors outside the US drew indications of interest in excess of US$220.1 million, or approximately 3.4 times the value of the placement tranche available for subscription, the Reit's manager said.

Based on the 87.8 million units available in total, the offering saw 3.2 times subscription rate.

Its manager said the international tranche attracted strong interest from investors including sovereign wealth funds, institutional investors which generally take long positions on their investments, insurance firms, multi-strategy funds and family offices. These include The Government Pension Fund of Thailand and Principal Asset Management, each of which had subscribed for and has been allocated more than 5 per cent of the units, it said.

Trading is expected to commence at 2pm on Thursday.