By Mark Heschmeyer CoStar News
United Hampshire US REIT, a Singapore-based real estate investment trust, has added to its U.S. holdings, acquiring a grocery-anchored center in suburban Philadelphia.
United Hampshire acquired Upland Square Shopping Centre in Pottstown, Pennsylvania, for $85.7 million, the company disclosed in filings with the Singapore Stock Exchange.
The REIT is using money raised from the sale of self-storage properties earlier in the year to boost its holdings in grocery retail properties.
“Following the recently announced divestment of the Elizabeth and Perth Amboy self-storage properties, we are pleased to be able to achieve our goal of recycling the proceeds of the sale into a higher yielding, sizeable, stabilized grocery and necessity asset,” Robert Schmitt, CEO of the REIT, said in a statement. “Upland Square is set to substantially enhance [United Hampshire’s] income visibility and resilience.”
The 400,674-square-foot Upland Square is 100% leased with an average lease term of 6.3 years. The property is tenanted by a Giant grocery anchor, as well as off-price apparel, quick service food and beverage facilities, pet services, and a fitness facility.
With the acquisition, United Hampshire will broaden its tenant base. Rent from its top 10 tenants will reduce from the current 60.2% to 56.8%, providing increased tenant diversification and stabilizing the portfolio’s income, the company said.
Paramount Realty Services of Lakewood, New Jersey, was the seller and had purchased the property for $83.3 million in October 2016, according to CoStar data.
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