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United Hampshire US REIT Lowers Sale Consideration For Self-storage Assets (The Business Times)

United Hampshire US REIT Lowers Sale Consideration For Self-storage Assets (The Business Times)

April 19, 2022 – United Hampshire US Reit has agreed to revise the sale consideration of its 2 self-storage properties – Elizabeth and Perth Amboy – down to US$45.5 million from US$49 million previously. 

This comes after the due diligence period for the proposed divestment lapsed following a number of delays, and upon taking into account an independent valuation of US$44.4 million for the asset. 

In an update on Tuesday (Apr 19), the Reit manager said its revised consideration are 2.5 per cent above the properties’ latest valuation and 17.7 per cent above their book value of US$38.7 million. 

An escrowed top-up amount of US$4.7 million has been fully depleted. The revised consideration is 4.9 per cent above the purchase price of US$43.4 million, inclusive of this top-up. 

The Reit manager estimates net proceeds of US$44.1 million after deducting transaction-related expenses. This equates to a cumulative divestment gain over book value of the properties of about US$5.4 million, it said. 

Read more here..

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