Announced on 18 September, the renounceable non-underwritten Rights Issue was done on the basis of 454 units for every 1,000 units held, at an issue price of S$0.490 per Rights Unit.
Valid acceptances and excess applications totaling 484.4 million Rights Units were received as at the close of the Rights Issue on 15 October 2020, an oversubscription of 166.2%.
Tikehau Capital, City Developments Limited and AT Investments Limited have, pursuant to their undertakings, subscribed for their respective total provisional allotments of the Rights Units corresponding to its direct interest in IREIT, signaling their commitment and support to IREIT as long-term investors.
Excluding applications from City Developments Limited and AT Investments, valid acceptances and excess applications were received for a total of 403.4 million Rights Units, representing approximately 138.4% of the Rights Units available under the Rights Issue.
Currently holding 40% of four freehold multi-tenanted office buildings located in Madrid and Barcelona, IREIT will use proceeds from the Rights Issue to acquire the remaining 60% of the Spain properties from Tikehau Capital. The remaining amount raised will be used for repayment of the CDL Loan in relation to the Spain properties.
Mr Louis d’Estienne d’Orves, Chief Executive Officer of the Manager, said,
“We strongly believe that this acquisition will add value to our existing portfolio through geographic diversification, and enable us to benefit from the Spain Properties’ quality tenant base and potential for positive rental reversions.”
IREIT’s aggregated leverage will also decrease from 39% to 35% post Rights Issue, providing IREIT with additional debt headroom and flexibility to fund its future growth opportunities and capital needs.
The Rights Units will, upon allotment and issue, rank pari passu* in all respects with the existing units in issue as at the date of issue of the Rights Units, including the right to any distributions which may accrue for the period from 1 July 2020 to 31 December 2020, as well as all distributions thereafter. (*Pari-passu is a Latin phrase meaning “equal footing” that describes situations where two or more assets, securities, creditors, or obligations are equally managed without preference.)
The Rights Units will start trading from 9am on 23 October 2020.
IREIT was trading flat at $0.610 on Tuesday after the announcement, as at time of writing.
IREIT Global (SGX:UD1U) which was listed on 13 August 2014, is the first Singapore-listed real estate investment trust (REIT) with the investment strategy of principally investing, directly or indirectly, in a portfolio of income-producing real estate in Europe which is used primarily for office, retail and industrial (including logistics) purposes, as well as real estate-related assets.
IREIT Global’s current portfolio comprises five freehold office properties in Germany, located in Berlin, Bonn, Darmstadt, Münster and Munich and four freehold office properties in Spain, located in Madrid and Barcelona.