IREIT Global’s manager accepts non-binding offer for 80% stake

iREIT Global logo

IREIT Global’s manager accepts non-binding offer for 80% stake

By: 
Goola Warden
26/05/16, 01:12 pm

SINGAPORE (May 26): IREIT Global’s manager has accepted a non-binding offer from Tikehau Capital, a pan-European asset management firm and investment group, to acquire 80% of the manager.

The offer from Tikehau Capital is non-binding, and is subject to certain conditions, including the receipt of regulatory approvals and due diligence to be conducted by Tikehau Capital, according to the announcement. Tikehau Capital has some 7.55 billion euros in assets under management of which 794 million euros are in real estate.

“Tikehau’s extensive pan-European network combined with strong local operational expertise and existing pipeline of real estate transactions in Europe is expected to contribute significantly to IREIT’s growth. The proposed acquisition would also enable Tikehau Capital to further consolidate its position in Asia from Singapore and to expand its pan European real-estate footprint,” says Tikehau Capital’s spokesman in a statement.

Advertisement

However, Religare Research wonders why Tikehau would want to own a majority stake in the manager without owning a controlling stake in IREIT Global itself. “It can be ousted anytime,’ according to Religare.

When contacted, Itzhak Sella, CEO of IREIT Global’s manager who also owns 16% of the manager, says, “Due diligence will take four to five weeks, and Monetary Authority Licensing a few months.” All REIT managers must hold a Capital Markets Services Licence by the MAS. 

Chinese property tycoon Tong Jinquan holds 65% of IREIT Global’s manager, and some 49% of the units in IREIT Global while Lim Chap Huat, founder and owner of Soilbuild Group holds 19% of both manager and REIT. Tong also owns 31% of Viva Industrial Trust’s manager and 49.5% of units in VIT.

IREIT Global in turns holds 441.4 million euros of five freehold office campus type properties in Berlin, Bonn, Darmstadt, Münster and Munich, in Germany. For the three months to March 31, it announced a distribution per unit equivalent to 1.58 cents giving an annualised DPU of 8.8%. Units in IREIT Global are trading at a 16% premium to its net asset value stood of 41 euro cents or 62 cents. At 1.07pm, units of IREIT Global were trading at 72 cents.

Management fees for the three months to March 31 rose 46.7% y-o-y to 641,000 euros or an annualised 2.56 million euros ($3.9 million) largely due to an enlarged asset base which grew by 52% over the year. The REIT’s base fees are 10.0% of IREIT’s annual distributable income and performance fee is 25% of DPU growth.

About two years ago, Canadian REIT managers were internalised at around 10 times earnings. IREIT Global’s manager does not announce earnings.

Analysts are expecting Tong to divest of his 49% stake in IREIT Global. Assuming he sells both manager and REIT units, he could net more than $200 million.

sentifi.com

Sentifi - The Edge Markets Singapore - Top themes and market

Right timing: Minor rebound could continue to build

SINGAPORE (Sept 22): Here are some charts this week for our technical analysis. Straits Times Index (daily)  A short term rebound is underway for the Straits Times Index (3,220), underpinned by the upturn in short term stochastics. This indicator has turned up smartly after wallowing around the bottom of its range for two weeks. ADX is rising, and the DIs remain negatively placed. These are positive signs.  The index rebounded 11 points during the week. Despite this, it remains below its 100-day moving average, currently at 3,253. If the rebound picks up steam, the in....
Read More >>

Third independent assessment puts 'most likely value' of ISR Capital's Madagascar concession at US$48 mil

SINGAPORE (Sept 22): ISR Capital announced Friday that Behre Dolbear Australia (BDA) – its third independent valuer – has issued an independent qualified persons technical report on its tantalus rare earths ionic clay project. BDA’s overall assessment of the value of the project at this stage of development is a range of US$25-75 million ($34-101 million), with a preferred most likely value of US$48 million. This comes after ISR last month said the value of the Madagascar rare earth concession, of which it wants to acquire a 60% stake, will be “much lower” than the two earlier ....
Read More >>

Uber loses license to operate in London

LONDON (Sept 22): London’s transport regulator on Friday stripped Uber of its license to operate from the end of the month, affecting over 40,000 drivers in a huge blow to the taxi app. “TfL considers that Uber’s approach and conduct demonstrate a lack of corporate responsibility in relation to a number of issues which have potential public safety and security implications,” Transport for London said on Friday. The final day of Uber’s license will be on Sept 30. In London, the firm has faced criticism from unions, lawmakers and traditional black cab drivers over working cond....
Read More >>