IREIT Global, a relatively low-profile REIT, emerged tops in the Centurion awards among its peers. However, one of its backers needs no introduction: local property giant City Developments, whose partner in this REIT is Tikehau Capital from France.
IREIT Global achieved 1.8% CAGR in earnings over the three years taken into consideration, thus snaring the top spot in this category. Its weighted ROE over the three years was 7.49 times, which puts it at the pole position for yet another year. And of course, IREIT Global is the overall sector winner as well.
IREIT Global was listed in August 2014 and is the first Singapore-listed 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.
Its portfolio now consists of five freehold office properties in Germany, four freehold office properties in Spain and 27 freehold retail properties in France. The portfolio has a total lettable area of about 369,000 sqm, an overall occupancy rate of approximately 97% and a portfolio valuation of EUR833.5 million ($1.3 billion).
Its most significant development was the acquisition of 27 retail properties in France belonging to the world’s largest sporting goods retailer Decathlon for EUR110.5 million. The properties will be leased back to Decathlon for 10 years.
Louis d’Estienne d’Orves, CEO of the REIT manager, describes this deal as moving IRET into a new asset class. “This Decathlon portfolio is complementary to our existing properties, and this acquisition is in line with our strategy of increasing our presence within Europe and beyond the office sector. This portfolio is yield accretive and aligned with our objective of delivering long term steady returns to unitholders.”
Photo: IREIT Global