IREIT Global, a Singapore-listed Europe-focused real estate investment trust, has entered a call option agreement to acquire a portfolio of 17 retail properties in France for €76.8m.
The vendor is DKR Participations, a vehicle managed by Tikehau Investment Management.
The out-of-town retail parks portfolio is fully-leased to the London-listed discount retailer B&M France.
Louis d’Estienne d’Orves, CEO of IREIT Global Group, said: “In this macro-economic environment marked by high inflation, the proposed acquisition is in line with our strategy of strengthening our exposure to index-linked assets in established European markets, supported by a strong blue-chip tenant.”
d’Estienne d’Orves said retail sales at out-of-town retail parks had outpaced the broader retail investment market.
“Their success is expected to continue due to their attractive yields for investors and lower rental costs for tenants compared to other asset classes,” he said.
d’Estienne d’Orves said the trust would leverage the expertise of its joint sponsors –Tikehau Capital, and City Developments Limited to identify potential yield-accretive acquisition opportunities in Europe that would strengthen its portfolio in scale and diversification.
IREIT Global’s current portfolio comprises five office properties in Germany, five office properties in Spain and 27 retail properties in France.
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