IREIT Global, the Singapore-listed Europe-focussed real estate investment trust, has agreed to buy a €110.5m portfolio of 27 retail properties in France from sporting goods retailer Decathlon.
Louis d’Estienne d’Orves, chief executive officer of IREIT Global Group (the manager), said the proposed sale and leaseback deal would extend IREIT’s presence to France and a new asset class.
“Despite COVID-19, France is currently doing well and will be expected to continue its recovery,” he said, adding that France’s household expenditure had increased to pre-COVID-19 levels and that the sporting goods sector had performed well.
“We are confident that, together with a global French brand and an attractive sub-sector real estate asset class, this acquisition will provide attractive and sustainable returns to our unitholders,” he said.
IREIT Global’s current portfolio comprises five office properties in Germany and four office properties in Spain.
“This Decathlon portfolio is complementary to our existing properties, and this acquisition is in line with our strategy of increasing our presence within Europe and beyond the office sector,” D’Estienne d’Orves added.
The Singapore company is backed by two complementary strategic investors, Tikehau Capital and City Developments.
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