Data from IREIT Global’s latest results have been updated into the Singapore REITs table.
IREIT Global is acquiring a remaining 60% interest in the portfolio of four office properties in Madrid and Barcelona from Tikehau Capital.
The portfolio consists of Il Ilumina, Delta Nova IV, Delta Nova VI, and Sant Cugat Green.
The stake is being acquired assuming market value of EUR136.4 million (USD160 million) for the properties on a 100% basis.
The properties are currently held through a 40-60 joint venture by IREIT and Tikehau Capital.
IREIT exercised the call option to acquire Tikehau Capital’s 60% share in the joint venture on 8 August.
The purchase consideration is approximately EUR47.8 million, derived based on the consolidated net asset value of the joint venture as at 30 June 2020, after taking into account the average of two independent valuations on the portfolio.
“The proposed acquisition allows IREIT to achieve full ownership of a high-quality office portfolio”, said Louis d'Estienne d'Orves, CEO of IREIT’s manager.
“It is also in line with our strategy of building and strengthening IREIT’s footprint across Europe”, he added.
IREIT intends to finance the proposed acquisition with a rights issue.
Tikehau Capital, CSEPL and AT Investments Limited have given their respective undertakings to subscribe, in aggregate, for all unsubscribed rights units in the rights issue.
Part of the net proceeds will also be used to repay the EUR32.0 million loan granted by CSEPL in December 2019.
The proposed acquisition is expected to be completed in 4Q2020.
Concurrently, IREIT has reported gross revenue and net property income of EUR18 million and EUR15.7 million respectively for its 1H 2020.
These are year-on-year increases of 2.6% and 1.4% respectively.
Distribution per unit (DPU) for 1H2020 amounted to 1.82 Euro cents, a fall of 1.1% from the 1.84 Euro cents in the prior year.
In SGD terms, the DPU fell by 2.7% to 2.85 Singapore cents.