27 May 2016


Tikehau Capital to acquire 80% of IREIT Global

IREIT Global’s manager has accepted a non-binding offer from pan-European asset management firm Tikehau Capital to acquire 80 per cent of the fund manager. The non-binding agreement is subject to the receipt of regulatory approvals and due diligence to be conducted by Tikehau.

IREIT Global is a real estate investment trust listed in Singapore which invests in a portfolio of income-producing real estate in Europe. Its current portfolio comprises five freehold German properties valued at €441.4 million located in Berlin, Bonn, Darmstadt, Münster and Munich. To date, IREIT’s portfolio has an aggregate net lettable area of over 200,000 square metre.

Tikehau Capital maintains an estimated 7.55 billion euros in assets under management (AUM). Of this, 794 million euros are invested in real estate, with this investment adding significantly to it. This acquisition will further expand its real estate portfolio and increase its exposure to the German property market.

The company commented: “The proposed acquisition would also enable Tikehau Capital to further consolidate its position in Asia from Singapore and to expand its pan European real-estate footprint.”

Other shareholders in IREIT Global’s manager are Chinese property developer and investor Tong Jinquan, who owns 65 per cent of the company, in addition to 31 per cent of Viva Industrial Trust’s manager and 49.5% of units in VIT. Tong could divest his stake in IREIT Global, with a sale of his interests in both the manager and REIT units potentially generating in excess of S$200 million.

Soilbuild Group owner and founder Lim Chap Huat is another major shareholding, owning about 49 per cent of the units in IREIT Global and 19 per cent of both the REIT manager and REIT.

DealStreet Asia