IREIT Global is acquiring a portfolio of 17 retail assets across France for EUR76.8 million.

The acquisition consideration is a discount of approximately 1.7% to the average of two independent valuations.

The assets have a total gross lettable area of 61,756 square metres and an overall occupancy rate of 100%.

Its weighted average lease expiry (WALE) by gross rental income is approximately 6.8 years as at 31 March 2023.

Of the 17 assets, 13 are freehold properties while the remaining 4 are leasehold properties.

All assets are fully leased to B&M France SAS.

Upon completion, IREIT’s enlarged portfolio in France will comprise 44 retail properties.

The REIT will fund the acquisition consideration with proceeds from a non-renounceable underwritten preferential offering, external bank borrowings, and borrowings from Tikehau Capital.

IREIT Global was last done on the Singapore Exchange at SGD0.485 before the trading halt on 1 June, which presently implies a distribution yield of 7.84% according to data on the Singapore REITs table.

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By Shariffa Al-Habshee

Shariffa joined REITsWeek in 2017, and monitors Asia-Pacific REITs for the publication.