IREIT Global, a Singapore-based Europe-focused real estate investment trust, has entered into an agreement with sporting goods retailer Decathlon to acquire a portfolio of 27 retail properties in France for €110.5 mln.
The deal is IREIT’s first foray into France and increases the diversification of IREIT’s portfolio from both a geographical and asset class perspective.
The properties, which were developed by Decathlon, cover 95,477 m2 of space and have all been leased back to the sporting goods retailer with a weighted average lease expiry of 10 years.
‘Following IREIT’s acquisition of four Spanish properties completed in October 2020, we are pleased to announce that we have secured another attractive portfolio of properties,’ commented Louis d’Estienne d’Orves, CEO of IREIT Global Group. ‘The proposed acquisition will extend our presence to France and a new asset class, as IREIT’s current portfolio comprises office properties in Germany and 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. This portfolio is yield accretive and aligned with our objective of delivering long term steady returns to unitholders.’
IREIT is financing the purchase with an equity fund raising backed by its major shareholders Tikehau Capital and Singapore’s City Developments. The deal is expected to be completed by the third quarter of 2021.
Following the acquisition, IREIT will own 36 assets in Europe encompassing 368,000 m2 across three countries – Germany, Spain and France, valued at a total of €833 mln.
