IREIT Global preferential offering meets strong demand

Euro coinsPhoto by Leslie Shaffer

IREIT Global’s preferential offering of new units was 151 percent subscribed amid strong demand for the 201.14 million new units available, the Europe-focused REIT said Wednesday in a filing to SGX.

In June, IREIT Global said it 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 fund-raising included a placement of 11.37 million new units at S$0.6155 each to new investor Bond Capital Partners, raising S$7 million, and a preferential offering on the basis of 214 new units at S$0.595 each for every existing 1,000 units, raising S$119.7 million.

Tikehau Capital, AT Investments and City Developments subsidiary City Strategic Equity each took up their allotment of preferential offering units, demonstrating their support for the REIT as long-term investors, the statement said.

After the completion of the offering City Strategic Equity will hold around 20.9 percent of the REIT’s units.

“The Decathlon Portfolio will complement our existing office properties in Germany and Spain, and will further diversify our portfolio geographically into France and by asset class,” Louis d’Estienne d’Orves, CEO of the REIT’s manager, said in the statement. “We will continue to effectively leverage our joint sponsors’ pan-European network and deep industry expertise to identify other attractive potential opportunities in Europe that will add scale and diversification to our portfolio.”

IREIT Global’s portfolio currently holds five office properties in Germany and four in Spain.

Tikehau Capital is an alternative asset management group with 29.4 billion euros under management as of end-March.