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IREIT Global's $126.7 mil equity fund raise for Decathlon acquisition sees preferential units oversubscribed

Atiqah Mokhtar
Atiqah Mokhtar7/15/2021 08:01 AM GMT+08  • 3 min read
IREIT Global's $126.7 mil equity fund raise for Decathlon acquisition sees preferential units oversubscribed
The 201 mil preferential offering units had a subscription rate of 151.2%.
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IREIT Global has raised approximately $126.7 million through a placement of 11.37 million new units to new investor Bond Capital Partners, as well as a pro-rata non-renounceable preferential offering of 201.14 million new units.

The proceeds will be used to acquire a portfolio of 27 Decathlon properties located in France.

The preferential offering units were underwritten and offered on the basis of 214 new units for every 1,000 existing units.

The placement of new units to Bond Capital was done at an issue price of 61.55 cents per new unit, raising approximately $7 million in gross proceeds. The issue price represents a discount of approximately 2.6% to the adjusted volume weighted average price (VWAP) of 63.2 cents per unit as at June 21.

The preferential offering units will be issued at an issue price of 59.5 cents per new unit raising approximately $119.7 million in gross proceeds. The issue price represents a discount of approximately 5.9% to the adjusted VWAP

BNP Paribas and RHB Bank are the joint global coordinators and bookrunners for the preferential offering.

IREIT Global reported a subscription rate of 151.2% for the preferential units, with key unitholders City Developments (CDL), Tikehau Capital and AT Investments each subscribing to their allotments in full.

Post-completion of the preferential offering, CDL will directly hold approximately 20.9% in IREIT Global, while the key unitholders will collectively hold approximately 50.3% in the REIT.

“We are very heartened to receive such strong support from our unitholders and new investor, Bond Capital, as well as the unwavering commitment from our joint sponsors and AT Investments,” says Louis d’Estienne d’Orves, CEO of IREIT Global’s manager.

“The Decathlon portfolio will complement our existing office properties in Germany and Spain, and will further diversify our portfolio geographically into France and by asset class. We will continue to effectively leverage our joint sponsors’ pan-European network and deep industry expertise to identify other attractive potential opportunities in Europe that will add scale and diversification to our portfolio,” he adds.

The manager intends to use part of the net proceeds from the equity fund raising to partially finance the total acquisition cost for the Decathlon properties of approximately $195.7 million, with the balance to be funded through external bank borrowings.

See also: PhillipCapital keeps 'accumulate' on iREIT Global with lower TP of 68 cents

The new units to Bond Capital were listed on June 30, while the preferential offering units will be listed on the SGX on July 21.

Units in IREIT Global closed 1 cent or 1.55% lower at 63.5 cents on July 15.

Photo: IREIT Global

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