Saturday, Jul 11, 2020
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Tikehau Capital, City Developments raise stake in IREIT Global

Tikehau Capital City Developments
The two companies will jointly acquire a 26.04 percent stake in IREIT Global

Tikehau Capital and City Developments plan to increase their stakes in IREIT Global which is focused on the European real estate market. Tikehau Capital is an alternative asset management and investment group. The two companies will acquire a 26.04 percent stake in IREIT Global, media reports said,

In November 2016, Tikehau Capital had invested in the REIT. Now, City Developments owns more than 50 percent of the REIT’s capital, media reports said. The increase in stake is in line with Tikehau Capital’s and City Development’s interest with minority stakeholders.

Tikehau Capital raised its stake to 29.2 percent from 16.64 percent. That said, Singapore-based developer City Developments has raised its stake to 20.87 percent from 12.52 percent in IREIT Global, media reports said.

IREIT Global is a first Singapore-listed real estate investment trust with a focus to invest directly or indirectly in Europe’s real estate portfolio. The transaction will highlights Tikehau Capital’s and City Developments’ common goal of developing IREIT Global and diversifying their portfolio.

Both companies now own more than half of IREIT Global’s capital, a statement said. The acquisition for Tikehau Capital represents cash investment of around €25 million.

Tikehau Capital has €25.8 billion of assets under management and shareholders’ equity of €3.1 billion as of December 31 2019. it invests in various asset classes including private debt, real estate, private equity and capital markets strategies among others.

More recently, it is reported that City Developments is committing over $17 million in property tax and rental rebates. This is to help its tenants cope with the severe effects of the Cover-19 pandemic.

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