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IREIT Global registers prospectus for IPO on SGX

Under the IPO, IREIT Global is offering almost 168 million units at 88 cents each. It will be Singapore's first REIT with a portfolio based in Europe.

SINGAPORE: Investors in Singapore will soon have access to the European real estate market. IREIT Global has registered its prospectus for an initial public offering (IPO) on the SGX mainboard.

Under the IPO, IREIT Global is offering almost 168 million units at 88 cents each. It will be Singapore's first REIT with a portfolio based in Europe. The IPO will comprise an international placement of about 156 million units to investors outside of the United States, and an offering of 11.36 million units for the public in Singapore.

Mr Lim Chap Huat, the owner of Soilbuild Group Holdings, has agreed to subscribe for about 80 million units under the international placement. IREIT has also entered into an agreement with Wealthy Fountain Holdings and Mr Tong Jinquan, chairman of Shanghai-based Summit Property Development - under which they would subscribe to a combined 251.603 million units.

It hopes to raise a total of about S$369 million in gross proceeds, the bulk of it to help pay for the properties that will be injected into the trust.

IREIT has an initial portfolio of four freehold office properties in Germany valued at approximately S$478 million dollars. The IPO closes on Aug 11 2014, and the trading is expected to commence two days after that.

"I believe this is one of the (most) successful REIT markets in the world. It's one of the largest capital markets in the world today and there are investors who understand this vehicle and are willing to invest. We are aiming to distribute 7.6 per cent for the year 2014 and 8 per cent in 2015 to 2016," said CEO and Founder of IREIT Global, Itzhak Sella. 

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