IREIT launches 454-for-1000 rights issue to fund Spanish properties

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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.

Related: IREIT acquires remaining intertest in Spanish portfolio

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.

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