IREIT Global has raised some $75.9 million in gross proceeds from its preferential offering. The offering, which was closed on July 11, was subscribed by 134.7% with valid acceptances and excess applications totalling 250.7 million preferential offering units received.
There were only 186.099 million units available under the offering.
The proceeds will be used to mainly fund the acquisition of a portfolio of 17 retail properties located across France. IREIT announced that it agreed to acquire the properties for EUR76.8 ($112.2 million) on June 1.
The preferential offering units will be made to the REIT’s existing unitholders at a preferential offering ratio of 161 units for every 1,000 existing units. The units will be issued at 40.8 cents apiece, which represents a discount of around 9.6% to the volume weighted average price (VWAP) of 45.15 cents per unit on June 19, when the preferential offering was launched.
Tikehau Capital and City Developments Limited (CDL), the REIT’s joint sponsors, and the REIT manager have each accepted, subscribed and paid in full for its total provisional allotment of the units corresponding to their direct interests in IREIT.
“The strong support we have received for the preferential offering and the faith that our unitholders and our joint sponsors, Tikehau Capital and City Developments Limited, have placed in us and our portfolio are truly humbling. As we forge ahead on our path towards enhancing IREIT’s portfolio diversification, we will continue to leverage on the expertise of our joint sponsors, as well as identify yield-accretive acquisition opportunities that will strengthen our portfolio performance, for the benefit of all our stakeholders,” says Louis d’Estienne d’Orves, CEO of the manager.
See also: Changes in ICR, leverage to come into effect immediately, with additional disclosures in March
Post-acquisition, IREIT will maintain a healthy aggregate leverage of 33.3%, which is well below the aggregate leverage limit of 50%. The REIT’s DPU is expected to increase to 2.31 Euro cents while its net asset value (NAV) will stand at 50 Euro cents.
According to IREIT, the preferential offering units are expected to be listed and quoted on the Mainboard of the SGX-ST with effect from 9am on July 19.
RHB Bank Berhad, acting through its Singapore branch, is the sole lead manager and underwriter for the preferential offering.
Units in IREIT closed at 42.5 cents on July 13.
