IREIT Global plans to raise S$126.7M in new equity offering

Singapore two-dollar bills

Correction: Due to a corrected filing from IREIT Global, this item has been updated to reflect the estimated IREIT Global stake of City Strategic Equity (CSEPL) and its concert parties after preferential offering.

IREIT Global has launched an equity fund-raising to raise around S$126.7 million to partially finance the S$195.7 million (around 122.3 million euro) acquisition of 27 properties in France from sporting goods retailer Decathalon, the Singapore-listed REIT said in a filing to SGX Tuesday.

The fund-raising will include a placement of around 11.37 million new units to Bond Capital Partners at S$0.6155 each to raise around S$7 million, the filing said. The price is a discount of 6 percent to the unit’s volume weighted average price (VWAP) of S$0.6548 for trades on Monday.

Bond Capital is a Singapore-based private investment office investing in long-term and diversified strategies in both public and private markets, the filing said. The shareholders of Bond Capital are Ong Wee Seng, Lim Sze Keat, Calvin See Meng Kai, Lim Sze Wee and Xie Zebo.

In addition, a preferential offering of around 201.14 million new units at S$0.595 each to eligible unitholders is expected to raise S$119.7 million, the filing said. The preferential offering will be on the basis of 214 new units for every 1,000 existing units held.

The preferential offering is priced at an around 9.1 percent discount to the VWAP of S$0.6548 on Monday.

Tikehau Capital SCA, City Strategic Equity (CSEPL) and AT Investments — all strategic investors in IREIT — and IREIT Global Group have each provided a commitment to take up their portion of the preferential offering, the filing said. CSEPL will take up any unsubscribed preferential units up to an amount that would not require it to make a mandatory general offer, for a commitment up to S$59 million, the filing said.

The aggregate IREIT stake held by CSEPL and its concert parties is expected to fall to 50.2 percent from 50.8 percent after the placement, if CSEPL takes up the full amount of excess preferential units, with CSEPL holding 25.8 percent, the filing said.

The new units are expected to be listed on 21 July.

Unitholders as of 29 June will be entitled to an advanced distribution of 2.23 to 2.33 Singapore cents.

BNP Paribas’ Singapore branch and RHB Bank were appointed joint global coordinators and bookrunners for the preferential offering.