Trading debut: IREIT Global joins Mainboard after $370m IPO

Its public offer was more than 7 times subscribed. The Singapore Exchange today welcomed IREIT Global, its first office REIT focusing only in properties in Europe.

This comes after an IPO that was 7.6 times subscribed and raised about $370 million. The Public Offer received 4,054 valid applications for 86,865,000 Unit. Its initial portfolio comprises four office properties in Germany in key cities of Bonn, Darmstadt, Münster and Munich, valued at approximately S$478 million.

According to Lawrence WOng, Head of Listings at SGX, “We welcome IREIT Global to Mainboard. Its focus in Europe adds geographical diversity to our REITs cluster and provides our global investors with access to the property sector in Germany and Europe. We look forward to welcoming more REITs and real estate companies from Europe to tap into Asia’s growing wealth base via a listing on SGX,

IREIT Global will trade under the stock code “UD1U”.

IREIT Global IPO Balloting Result from SGX website.

IREIT Global IPO Prospectus.

INTRODUCTION TO IREIT GLOBAL
IREIT is a Singapore real estate investment trust (“REIT”) established with the investment strategy of principally investing, directly or indirectly, in a portfolio of income-producing real estate in Europe which is used primarily for office purposes, as well as real estate-related assets. With an initial portfolio of four properties in Germany (the “IPO Portfolio”), IREIT is expected to have an initial primary focus on Germany and the United Kingdom.

• IPO Price = S$0.88
• NAV = S$0.78
• Price / NAV = 1.128 –> IPO price is 12.8% Premium to the NAV. (Page 38 of IREIT Global IPO Prospectus)
• Projected DPU Yield = 7.6% (2014), 8% (2015) (Page 14 of IREIT Global IPO Prospectus)
• Total Number of Units Issued = 419,337,000  (Page 38 of IREIT Global IPO Prospectus)
• Total Debt = Euro 95,019,000 (Page 38 of Balance Sheet of IREIT Global IPO Prospectus)
• Total Asset = Euro 290,796,000 (Page 38 of Balance Sheet of IREIT Global IPO Prospectus)
• Gearing Ratio = 32.67%
• WALE = 7.6 Years
• Occupancy Rate = 100%
• Distribution Policy = At least 90% of Annual Distributable Income on Semi Annual Basis. (Page 33)

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See other Singapore REIT Comparison Table here.