IREIT Global has launched a 454-for-1000 rights issue to raise some EUR88.7 million (SGD142.8 million).
Proceeds from the issue will be mainly used to finance the remaining 60% interest in four freehold multi-tenanted office buildings located in Madrid and Barcelona, Spain.
The properties are being acquired from Tikehau Capital, and a mandate for this was obtained at an EGM on 18 September.
Part of the proceeds will also be deployed by the REIT to repay a loan from CDL.
The rights issue comprises an offer of 291,405,597 units on a renounceable non-underwritten basis.
The units will be issued at an issue price of SGD0.490 per unit.
This represents a discount of approximately 32.9% to the closing price of SGD0.730 as of 18 September 2020.
It is also a discount of approximately 25.2% to the theoretical ex-rights price (TERP) of SGD0.655 per unit.
At the last close, IREIT Global's implied distribution yield is currently at 8.3% according to data compiled on the Singapore REITs table.