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IREIT Global&rsquo s manager accepts non-binding offer for 80% stake
SINGAPORE (May 26): IREIT Global&rsquo s manager has accepted a non-binding offer from Tikehau Capital, a pan-European asset management firm and investment group, to acquire 80% of the manager.
The offer from Tikehau Capital is non-binding, and is subject to certain conditions, including the receipt of regulatory approvals and due diligence to be conducted by Tikehau Capital, according to the announcement. Tikehau Capital has some 7.55 billion euros in assets under management of which 794 million euros are in real estate.
When contacted, Itzhak Sella, CEO of IREIT Global&rsquo s manager who also owns 16% of the manager, says, &ldquo Due diligence will take four to five weeks, and Monetary Authority Licensing a few months.&rdquo All REIT managers must hold a Capital Markets Services Licence by the MAS.
Chinese property tycoon Tong Jinquan holds 65% of IREIT Global&rsquo s manager, and some 49% of the units in IREIT Global while Lim Chap Huat, founder and owner of Soilbuild Group holds 19% of both manager and REIT. Tong also owns 31% of Viva Industrial Trust&rsquo s manager and 49.5% of units in VIT.
IREIT Global in turns holds 441.4 million euros of office campus type properties in Germany. For the three months to March 31, it announced a distribution per unit equivalent to 1.58 cents giving an annualised DPU of 8.8%. Units in IREIT Global are trading at a 16% premium to its net asset value stood of 41 euro cents or 62 cents. At 1.07pm, units of IREIT Global were trading at 72 cents.
Management fees for the three months to March 31 rose 46.7% y-o-y to 641,000 euros or an annualised 2.56 million euros ($3.9 million) largely due to an enlarged asset base which grew by 52% over the year. The REIT&rsquo s base fees are 10.0% of IREIT&rsquo s annual distributable income and performance fee is 25% of DPU growth.
About two years ago, Canadian REIT managers were internalised at around 10 times earnings. IREIT Global&rsquo s manager does not announce earnings.
Analysts are expecting Tong to divest of his 49% stake in IREIT Global. Assuming he sells both manager and REIT units, he could net more than $200 million.
- See more at: http://smr.theedgemarkets.com/article/ireit-global%E2%80%99s-manager-accepts-non-binding-offer-80-manager?utm_source=Singapore+Market+Report& utm_campaign=a9797f44dd-SMR27052016& utm_medium=email& utm_term=0_46b7beec93-a9797f44dd-90701389#sthash.lv0a4rI2.dpuf
Read news about REIT manager accepting offer for 80% of its stake. Seems the corner stone investors are exiting. What will be the impact on the IREIT?
Good research report released by DBS Vickers on IREIT:-
https://researchwise.dbsvresearch.com/ResearchManager/DownloadResearch.aspx?E=bjgdik-b
IREIT Global at 9.85% yield. Is it time to buy?
http://mystocksinvesting.com/singapore-stocks/ireit-global/ireit-global-high-9-85-distribution-yield-good-buy/
Secret_Squirrel ( Date: 02-Aug-2015 23:58) Posted:
There is a write up on this company on the current issue of THE EDGE SINGAPORE 3 August 2015 -9August 2015 issue on pg 12-13. A copy is available in the National Library.
marubozu1688 ( Date: 02-Aug-2015 22:50) Posted:
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There is a write up on this company on the current issue of THE EDGE SINGAPORE 3 August 2015 -9August 2015 issue on pg 12-13. A copy is available in the National Library.
marubozu1688 ( Date: 02-Aug-2015 22:50) Posted:
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tough, with euroup n down , how to calculate? now euro is much lower,,no more 8%, think u must take the rights, if not u lose out.
fundamental ( Date: 09-Jul-2015 17:26) Posted:
5.3 Pro Forma DPU and Distribution Yield The pro forma financial effects of the Transactions on the DPU and distribution yield for IREIT for FP2014, as if IREIT had purchased the Berlin Property and completed the Rights Issue on the Listing Date, and held and operated the Berlin Property through to 31 December 2014, are as follows: Actual(1) Pro Forma Distributable income (&euro &lsquo 000)(2)............ 6,417 9,333 Units in issue ..................................... 419,337,000 608,944,567(5) DPU (&euro cents)(3) ................................. 1.53 1.53 DPU (Singapore cents)(4) ................... 2.57 2.58 Annualised Distribution yield .............. 8.3%(6) 9.6%(7)
Anyone knows how they got to the 9.6% dividend yield? What is the calculation?
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5.3 Pro Forma DPU and Distribution Yield The pro forma financial effects of the Transactions on the DPU and distribution yield for IREIT for FP2014, as if IREIT had purchased the Berlin Property and completed the Rights Issue on the Listing Date, and held and operated the Berlin Property through to 31 December 2014, are as follows: Actual(1) Pro Forma Distributable income (&euro &lsquo 000)(2)............ 6,417 9,333 Units in issue ..................................... 419,337,000 608,944,567(5) DPU (&euro cents)(3) ................................. 1.53 1.53 DPU (Singapore cents)(4) ................... 2.57 2.58 Annualised Distribution yield .............. 8.3%(6) 9.6%(7)
Anyone knows how they got to the 9.6% dividend yield? What is the calculation?
Ok, dats reassuring. tks so much. It was so sudden!
edwinjup ( Date: 06-Jul-2015 21:21) Posted:
If u got the share before xr..u got the right shares...wait for ur letter...
retsel ( Date: 06-Jul-2015 21:20) Posted:
Hi, I just noticed that this reit has gone XR!
So sudden, without much notice!
I have the shares but I didnt subscibe the rights before XR. Does this mean I wont get any of the rights? Can anyone help clarify ?
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If u got the share before xr..u got the right shares...wait for ur letter...
retsel ( Date: 06-Jul-2015 21:20) Posted:
Hi, I just noticed that this reit has gone XR!
So sudden, without much notice!
I have the shares but I didnt subscibe the rights before XR. Does this mean I wont get any of the rights? Can anyone help clarify ?
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Hi, I just noticed that this reit has gone XR!
So sudden, without much notice!
I have the shares but I didnt subscibe the rights before XR. Does this mean I wont get any of the rights? Can anyone help clarify ?
Thanks for interesting feedback,
Most REITS and Trusts issues placement units or rights for reason to fund yield accretive acquisitions and/or reduce debt (improve gearing). I am surprised with this rights issue the gearing bumps up so much higher. This should be so only if the funds needed for acquisition is so much more than inflow of funds from new issues / rights that borrowings and debt leverage increased - so for me, this makes one wonder how the rights price are calculated. If from this exercise gearing goes up by so much, then the only rationale for doing this exercise is yields have to be notably higher post right which I am not sure if that' s the case or not. On the Euro suspect iREIT must hedged its Euro though the questions remain hedged at what value and for how long. However, I agree its German based properties are all in Euro and revenue streams will be tied to the strength of the Euro in some ways so would be a country risk for this REIT.
Gearing goes up to 46% after rights issuance. The TERP (theoretical ex-rights price) is 0.70.
This reit' s revenue is very dependent on strength of the Euro. Even if distribution stays the same, you might get lesser and lesser dividends in S$ value if Euro continues to slide. Whether the ECB will continue its monetary easing or whether the impending GREXIT would weaken the Euro is anyone' s guess. But I would stay out of this REIT for now.
Also. given it is trading at above TERP price, you can expect some selling pressure once the new units come into play.
Trade with caution.
Ex Rights today. If you were a holder, then make sense to subsribe and convert the rights since the discount off last Cum Right Price is hefty. If non holder, then you can just consider buying ex rights units now if you can get it below 72 cents assuming you are intend on buying iREIT. Before rights, iREIT has good yield circa 8% with relative good gearing (low 30s). Price was slightly above NAV around 1.1. After rights, I am not sure how the yield and other parameters change.
Anyone following this REIT. Annouced rights issue. should subscribe?
http://moneyweek.com/greece-running-out-of-options/
The beggining of yet another EU crisis? The ejection of Greece would have significant impact on the EU currency and its creditworthiness.
This stock has lost more than 10% since IPO.
My take is that it is set to slide even more due to money printing activities in the Eurozone until late 2016 early 2017. Long time away. Be prepared to see profits slide as the Euro tumbles. Also note that the Euro contagion that is Greece has yet to be resolved - any exit would be a blow to the euro and its dollar value.
I would stay far far away.
In view of the current price cheaper than IPO of $0.88 in 13 Aug 14 and coupled with forthcoming distribution estimated around $0.028. Is the IREIT Global good to buy now for future strong EURO in 18 months later.
