IReit Global : UD1U 0% has received a total of 250.7 million valid acceptances and excess applications, or 134.7 per cent of the total number of preferential offering units available, at the close of its offering on Jul 11. Valid acceptances came to 77.3 per cent.

In a bourse filing on Thursday (Jul 13), the manager said that it received valid acceptances of 143.9 million new units and excess applications of 106.9 million units. A total of about 186.1 million preferential offering units will be issued to raise gross proceeds of S$75.9 million.

The excess applications totalled 57.4 per cent of the amount on offer. The balance of 42.2 million preferential offering units that were not validly accepted will be allotted to satisfy excess applications.

The offering, which was launched on Jun 19, was for 161 preferential offering units for every 1,000 existing units at a price of S$0.408 apiece. It is expected to increase the real estate investment trust’s market capitalisation by about 13.7 per cent, to S$640.7 million.

IReit’s joint sponsors – Tikehau Capital and City Developments (CDL) (through its wholly-owned subsidiary City Strategic Equity) – and the Reit’s manager have each accepted, subscribed and paid in full for its total provisional allotment of the preferential offering units corresponding to its direct interest in IReit.

Tikehau Capital took up 53.5 million preferential offering units, CDL took up 38.6 million, and the manager took up 791,641.

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CDL also made an excess application for 59.4 million units, such that when aggregated with its total provisional allotment, its total subscription would amount to approximately S$40 million of preferential offering units.

“As the preferential offering was oversubscribed, (City Strategic Equity) will not be allotted any excess preferential offering units,” said IReit’s manager.

Immediately following the completion of the preferential offering, Tikehau Capital, CDL and the manager will directly hold approximately 28.7 per cent, 20.8 per cent and 0.4 per cent, respectively, of the total number of 1.34 billion units in issue.

The preferential offering units will be listed on the mainboard of the Singapore Exchange from 9 am on Jul 19.

The proceeds will mainly be used to fund the acquisition of 17 retail properties located across France, which are fully let to B&M France, a wholly-owned subsidiary of B&M European Value Retail.

“Post-acquisition, IReit will maintain a healthy aggregate leverage of 33.3 per cent, well below the aggregate leverage limit of 50 per cent, providing it with ample debt headroom for future growth opportunities,” said the manager.

Distribution per unit is expected to increase to 2.31 euro cents, while net asset value per unit will stand at 0.50 euro

Units of IReit Global closed flat at S$0.425 on Thursday, before the announcement.