IREIT Global to take ownership of 17 French retail properties
Singapore-based IREIT Global, a Europe-focused REIT managed by IREIT Global Group, has agreed to acquire 17 retail properties located across France for €76.8 million ($83 million).
The properties have a gross leasable area of 61,756 square meters (664,736 square feet), and are fully leased to B&M Group, a European discount retailer, which has occupied the properties since 2005.
Of the new properties, IREIT said 13 are freehold properties and the remaining four are leasehold properties. Following the completion of the transaction, IREIT’s portfolio in France will consist of 44 retail properties.
“We are delighted to be acquiring an attractive portfolio of retail parks — out-of-town properties — located in well-established regional retail areas,” said Louis d’Estienne d’Orves, CEO of IREIT Global Group. “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.”
According to d’Estienne d’Orves, the retail parks segment has outpaced the broader retail investment market. Its success is expected to continue due to the sector’s attractive yields for investors and lower rental costs for tenants, compared with other asset classes.