SINGAPORE - A local real estate investment trust that will invest in European properties launched its initial public offering (IPO) yesterday (Aug 4) with the aim of raising gross proceeds of $369 million.

IREIT Global has an initial portfolio of four freehold properties in Germany, valued at about $478.3 million.

The company has priced the IPO at 88 cents a unit, and 167.7 million units will be available, according to its final prospectus lodged with the Monetary Authority of Singapore on Aug 4.

International investors have been allocated 156.4 million units, while the public tranche stands at 11.4 million units.

IREIT said in a statement: "This follows a week of successful international road shows with interest received from investors during the book-building process exceeding the number of units offered under the placement tranche."

The Reit has already caught the attention of Mr Tong Jinquan, a property tycoon ranked as China's 35th richest man by Forbes, who will buy 251.6 million units in the IPO.

The reit has projected a distribution per unit yield of 8 per cent for 2015.