Decathlon Lannion (IREIT Global)

IREIT Global has launched a 214-for-1000 rights issue exercise for eligible existing unitholders to raise gross proceeds of approximately SGD119.7 million.

The preferential offering is part of an equity fund raising exercise conducted by the REIT to raise some SGD126.7 million for its recently announced acquisitions in France.

Related: IREIT Global marks forray into France by acquiring 27 Decathlon assets

The rights units will be priced at SGD0.595 each, which represents a discount of about 9.1% to the volume weighted average price (VWAP) of SGD0.6548 for all trades of the REIT on 21 June.

Besides the preferential offering, IREIT Global is also conducting a private placement of 11,372,868 new units to Bond Capital Partners at an issue price of SGD0.6155 each to raise some SGD7 million.

Meanwhile, this placement represents a discount of 6.0% to the VWAP of SGD0.6548.

Once the fund raising exercise is complete, IREIT Global’s total number of issued units is expected to increase by 212,510,738 units.

IREIT Global was last done on the SGX at SGD0.655, which currently implies a distribution yield of 7.68% according to data compiled on the Singapore REITs table.

Related: IREIT Global spells out future direction amid forray into retail assets

By Ridzwan Rahmat

Ridzwan has been analysing REITs and business trusts since 2008, and personally manages a portfolio comprising mainly of SGX-listed REITs. He founded REITsWeek in 2013.