At a glance
- The buyer, 200 Crown LLC, is an unrelated third party.
- The REIT said proceeds will provide additional financial flexibility, with reducing bank borrowings first on the list, followed by potential acquisitions, asset enhancements, and development opportunities.
- The manager called the deal part of an active portfolio management strategy, recycling capital into opportunities that could enhance the resilience, diversification, and value of the REIT.
United Hampshire U.S. REIT agreed Aug. 17 to sell the BJ's Wholesale Club property in Quincy, Massachusetts, for $34 million, IREI first reported. The buyer, 200 Crown LLC, is an unrelated third party. The conditional purchase agreement, signed through the REIT's indirectly wholly owned subsidiary BJ's Quincy 2016 LLC, is expected to close Sept. 15, subject to customary adjustments.
The REIT said proceeds will provide additional financial flexibility, with reducing bank borrowings first on the list, followed by potential acquisitions, asset enhancements, and development opportunities. On a pro forma basis, the divestment brings the aggregate leverage ratio down to 35.9% from 38.6% as of Dec. 31, 2025, and lifts adjusted interest coverage to 2.5 times from 2.4 times for fiscal 2025.
The manager called the deal part of an active portfolio management strategy, recycling capital into opportunities that could enhance the resilience, diversification, and value of the REIT. The dollar figure is small; the balance-sheet effect is disproportionately large. A single $34 million asset sale that moves the leverage ratio by nearly three points is balance-sheet recalibration wearing a portfolio trade's clothes.
Reported by the Deals desk from IREI. Published . Corrections