United Hampshire US REIT has acquired a new property, Dover Marketplace, for US$16.4 million, which is 4.8% below an independent valuation.
The property is a grocery-anchored freehold property located in Dover, Pennsylvania. The anchor tenant is a leading supermarket chain The GIANT Company, which has been the anchor tenant for nearly 25 years.
Dover Marketplace has a net lettable area of approximately 61,044 sq ft, with a committed occupancy rate of 96.1%. This property has a long WALE of 9.7 years, which is longer than UHREIT’s portfolio WALE of 7.8 years as at March 31.
This is UHREIT's third acquisition in Pennsylvania, further extending its footprint in the densely populated and affluent US Northeast markets.
UHREIT is funding this deal fully with proceeds from the divestment of Albany Supermarket, which was completed in 1Q 20252
Gerard Yuen, CEO of the manager, says this acquisition is part of UHREIT's ongoing portfolio optimisation and capital recycling strategy to enhance returns to unitholders.
See also: AIMS APAC REIT to acquire Framework Building for $56.65 mil
According to Yuen, the acquisition of Dover Marketplace is expected to provide 2% uplift to UHREIT’s DPU from 3.95 US cents to 4.03 US cents, on a pro forma FY2024 basis.
“This acquisition will further expand and enhance UHREIT’s grocery-anchored portfolio," he adds.
United Hampshire US REIT closed at 47 US cents, down 1.05% for the day and down 2.08% year to date.
