Tikehau Capital, CDL raise their stakes in IReit Global as strategic partners

IREIT Global on Tuesday said its key unitholders and strategic partners Tikehau Capital and City Developments Limited (CDL) have raised their stakes in the real estate investment trust (Reit).

French asset management and investment group Tikehau Capital raised its stake to 29.2 per cent from 16.64 per cent, while Singapore-based developer CDL increased its stake to 20.87 per cent from 12.52 per cent.

This brings their aggregate shareholding to over 50 per cent, IReit Global's manager said in a regulatory update.

Bruno de Pampelonne, chairman of Tikehau Investment Management and senior partner at Tikehau Capital, said the joint stake increase by Tikehau Capital and CDL reflects both parties' positive long-term view on IReit Global's growth prospects and strategy.

The stake increase also demonstrates Tikehau Capital's and CDL's strong alignment of interest with minority unitholders, he added.

Both parties jointly own IReit Global's manager.

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Meanwhile, new investor AT Investments has also acquired a 5.5 per cent stake in the Reit. The company is owned by India-born billionaire Arvind Tiku, whose family office has an asset portfolio worth some US$2 billion.

Mr Tiku said AT Investments considers the long stable leases of the Reit's portfolio, which is supported by blue-chip tenants, to be a very attractive investment opportunity.

"We believe that the resilience of the portfolio will enable IReit to emerge stronger after the Covid-19 outbreak," he added.

On Monday, IReit Global units closed down S$0.02 or 3.7 per cent to S$0.52, while CDL shares rose S$0.30 or 4.5 per cent to S$7.01.