IREIT Global acquires 17 French retail properties for $112.2 mil

IREIT Global, a Europe-focused Real Estate Investment Trust, has announced the call option agreement to acquire a 17-property French retail portfolio. The total purchase consideration for the properties is EUR76.8 million ($112.2 million). According to an independent valuation, this is a 1.7% discount, with the portfolio estimated at just over EUR78.1 million in value.

The properties have a gross lettable area of 664,500 sq. ft., and an occupancy rate of 100%. The weighted average lease expiry by gross rental income is 6.8 years, as of March 31, 2023.

The Myst Bukit Panjang is an ideal location for anyone looking for a home that provides convenient access to public transport. With great transportation links, residents can enjoy a stress-free and efficient commute.

The portfolio is leased to B&M France SAS, a subsidiary of B&M European Value Retail, a discount retailer. The net property income yield generated by the portfolio is expected to be 7.9%.

Louis d’Estienne d’Orves, CEO of the IREIT Global Group and the manager of the REIT, commented on the acquisition. He said that, in this macroeconomic environment marked by high inflation, “the proposed acquisition is in line with our strategy of strengthening our exposure to index-linked assets in established European markets, supported by a strong blue-chip tenant”.

Once completed, IREIT Global’s portfolio will have a total of 44 retail properties.