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IREIT Global indicates plans for IPO

Real estate investment trust IREIT Global's IPO is expected to raise S$372.4 million in gross proceeds.  

SINGAPORE: A real estate investment trust IREIT Global has lodged its preliminary prospectus with the Monetary Authority of Singapore for a listing on the Singapore Exchange (SGX). The IPO is expected to raise S$372.4 million in gross proceeds - based on an indicative offer price of 88 cents per unit.

IREIT Global plans to offer a total of 169.2 million units in the placement and public tranche. Another 253.9 million units will be subscribed by Chinese property tycoon Tong Jinquan.

IREIT Global invests mainly in office properties in Europe and other real estate-related assets. It has an initial portfolio of four office properties in Germany valued at about S$483 million. The four properties, located in Bonn, Darmstadt, Münster and Munich, have a total net lettable area of 1.31 million square feet.

In its prospectus, IREIT Global said that the four freehold properties are either recently built or refurbished. Therefore, it expects minimal capital expenditure on the buildings up to December 2016. 

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