IReit Global launches fully underwritten preferential offering
Tay Peck Gek
EUROPE-FOCUSED real estate investment trust IReit Global has launched a preferential offering at a ratio of 161 preferential offering units for every 1,000 existing units at a price of S$0.408 per new unit.
The S$75.9 million proceeds will be used mainly to fund the acquisition of a portfolio of 17 retail properties located across France, IReit Global’s manager said in a regulatory filing on Monday (Jun 19).
Up to about 186.1 million units will be offered to existing unit holders in the fund-raising exercise; the issue price represents a discount of about 9.6 per cent to the volume weighted average price of S$0.4515 per unit on Monday.
The transfer books and register of unit holders of IReit closes at 5pm on Jun 27 for the purpose of determining the provisional allotment of the new units.
The joint sponsors of IReit – Tikehau Capital and City Developments (through its wholly-owned subsidiary City Strategic Equity) – and the Reit’s manager have irrevocably undertaken to subscribe in full each of their pro-rata allotment in the preferential offering.
City Strategic Equity has undertaken to subscribe for excess units such that its aggregated subscriptions would amount to a maximum of about S$40 million, but will rank last in the allocation of excess preferential offering units applications.
Overall, the joint sponsors and Ireit’s manager are committed to subscribe up to a maximum of about S$62.1 million or 81.8 per cent of the preferential offering.
The offering, the manager’s chief executive Louis d’Estienne d’Orves said, is expected to increase Ireit’s market capitalisation by approximately 14.4 per cent to S$601.9 million.
Ireit units were 1.1 per cent lower at S$0.455 at market close on Monday, before the specifics of the preferential offering were announced.
Copyright SPH Media. All rights reserved.
