Grocery and necessity-anchored shopping centres and self-storage are amongst the most recession resistant, cycle-agnostic, and stable property types in the US according to independent market research. Self-storage caters to life changes. For instance, in economic downturns, families may need to downsize their home or move into a smaller multi-family dwelling, increasing demand for self-storage space as excess household items need to be stored. During the Global Financial Crisis in2009, rents for the US self-storage sector only decreased by approximately 2% while occupancy only dropped by 4%.
SINGAPORE (Feb 25): United Hampshire US REIT, sponsored by Hampshire Companies and UOB Global Capital, lodged its prospectus on Feb 25. Hampshire Companies is an established U.S. real estate manager with over 60 years of track record and deep hands-on asset management expert who has worked with United Overseas Bank for more than 10 years. The yield at the IPO price is more than 7%.
The initial portfolio of the REIT comprises 18 grocery and necessity properties with a total NLA of 2.86 million sq ft and four self-storage properties with a total NLA of 0.31 million sq ft. along the east coast of the US, in Massachusetts, New York, New Jersey, Maryland, North Carolina and Florida. The properties are being acquired for US$584.6 million.
