Company Briefs: IREIT Global

IReit Global CEO Itzhak Sella.
IReit Global CEO Itzhak Sella.PHOTO: BUSINESS TIMES

IREIT Global

Real estate investment trust IReit Global is acquiring an office building in Berlin, Germany, for €144.2 million (S$216.5 million).

The acquisition will be IReit's first since it listed on the Singapore Exchange last August.

The property, which will be the largest asset in IReit's portfolio, is 6km east of Berlin's city centre in an area popular with Internet, media and technology companies, Reit manager IReit Global Group said.

The acquisition, to be funded by a mix of equity and debt, will lift IReit's total portfolio value to €438 million from €290.6 million, and to four properties in various German cities.

IReit expects a net property income of 7.1 per cent from the Berlin acquisition, thanks to the building's principal tenant, federal pension fund Deutsche Rentenversicherung Bund.

The fund occupies 98.8 per cent of the property's total lettable area.

IReit announced a rights issue to raise gross proceeds of about $88.7 million, through an offer of 189.6 million new units at 46.8 cents.

It also intends to draw down a loan of €102 million from a local German bank.

Rex International

Fram Exploration ASA, in which Rex International holds a 30.29 per cent stake, has agreed to terminate a five-year lease for two rigs with Loyz Energy, which will pay Fram a termination fee of US$13.8 million (S$18.6 million) - US$2.5 million in cash and US$11.3 million in 136.5 million new Loyz shares.

Sembcorp Development

Sembcorp Development, a unit of Sembcorp Industries, has gained the right to develop a 750ha integrated township and industrial park in Vietnam's Nghe An province as part of a joint venture. The Vietnam Singapore Industrial Park Joint Venture is 49 per cent owned by Vietnam's Becamex IDC Corporation and 51 per cent owned by a Singapore consortium in which Sembcorp Development has a 92.9 per cent stake. The project will be developed in phases in tandem with demand.

The first phase of investment will be funded using US$15.2 million of equity from the joint venture's wholly-owned project company, VSIP Nghe An, as well as external borrowings and project cash flow. Nghe An is 400km from Hanoi and 70km from the Laotian border. The project will target garment manufacturers, agribusinesses and fast-moving consumer goods sectors.

A version of this article appeared in the print edition of The Straits Times on July 01, 2015, with the headline 'Company Briefs: IREIT Global'. Print Edition | Subscribe