The preferential offering by IREIT Global to raise proceeds of around $75.9 million to fund the acquisition of 17 retail properties across France is on its last day on 11 July 2023 today.
IREIT Global is offering 186 million shares to existing shareholders at a ratio of 161 preferential offer shares for every 1,000 existing shares at a price of $0.408.
The joint sponsors of the Reit, Tikehau Capital and City Development Limited (CDL) have irrevocably undertaken to subscribe their entitled preferential shares in full. CDL's subsidiary, City Strategic Equity Pte Ltd has further undetaken to subscribe for excess units up to a maximum of $40 million.
I favour IREIT Global for its exposure to niche European income-producing properties which are mostly freehold. While riskier, it helps to diversify my income portfolio which contains quality S-REITS with predominant local presence.
The acquired B&M, a French retail portfolio comprising 17 fully occupied properties have long WALE of 6.8 years. 13 are freehold and 4 are leasehold.
As I own 12,000 shares of IREIT Global, I am entitled to 1,932 preferential offer shares at $0.408.
As this is a yield accretive fund raising project and at a yield of more than 8%, I intend to subscribe to 10,000 preferential offer shares, including excess and hope to get as much as possible.
I decide to use Paynow on the CDP portal instead of using the ATM.
There it goes.
My investment in IREIT Global is positioned for the long-term, at least the next decade, for passive income.
I acknowledged the higher risks from this investment in "European properties" and expect the share price of IREIT Global to remain weak and feeble in the short term. However, higher risks deliver potential higher returns and I feel comfortable and confident with the prospects of this Reit.
In the coming months, years and decade, I look forward to enjoy more dividends in Euros from IREIT Reit perpetually effortlessly.
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