The manager of United Hampshire US Real Estate Investment Trust (UHREIT) has granted a third extension of the due diligence period for the proposed divestment of two self-storage properties.
The move comes as the purchaser requires more time to carry out its due diligence on the properties, the REIT manager stated in an Apr 5 regulatory filing.
With this, the due diligence period has been extended to Apr 11.
Pursuant to the terms of the purchase-and-sale agreement, the purchaser – Storage Post – was entitled to carry due diligence on the properties by Mar 21.
The due diligence was first extended to Mar 28 and subsequently postponed again to Apr 4.
In this time, the purchaser is entitled to terminate the agreement at any time and for any reason or for no reason at all, and be refunded the deposit.
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The proposed divestment of the said two freehold properties – Elizabeth Self-Storage and Perth Amboy Self-Storage – was announced in February for a total sale consideration of US$49 million ($36.2 million).
“Unitholders should exercise caution when trading in the units of UHREIT. There is no certainty or assurance as at the date of this announcement that the divestment will be completed, or that no changes will be made to the terms thereof,” CEO of the REIT manager Robert Schmitt notes.
Units in UHREIT closed flat at 65 cents on April 5, before the announcement.
Cover image: UHREIT
