Darmstadt Campus, an asset of IREIT Global. (IREIT Global)Darmstadt Campus, an asset of IREIT Global. (IREIT Global)

IREIT Global has launched a preferential offering exercise that will raise gross proceeds of approximately SGD75.9 million.

The preferential offering exercise will be offered on a 161-for-1000 basis, and will see the issue of up to 186,098,518 new units in the REIT.

The new units will be issued at SGD0.408 each, which represents a discount of approximately 9.6% to the volume weighted average price of SGD0.4515 per unit on 19 June 2023.

The proceeds will be used to mainly fund the acquisition of a portfolio of 17 retail properties located across France.

To demonstrate their support for IREIT and the preferential offering, the joint sponsors of IREIT and its manager have irrevocably undertaken to subscribe in full each of their pro-rata allotment in the preferential offering.

“The preferential offering is expected to increase market capitalisation by approximately 14.4% to SGD601.9 million, enhancing the probability of inclusion in key equity indices”, said Louis d’Estienne d’Orves, CEO of the REIT’s manager.

IREIT Global was last done on the Singapore Exchange at SGD0.44, which presently implies a distribution yield of 8.64% according to data on the Singapore REITs table.

Related: IREIT Global assuages concerns over tenant durability in 17-asset acquisition

By Shariffa Al-Habshee

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