City Developments buys 50% stake in IREIT Global Group for $18.4m

The firm also bought 12.4% of the REIT’s total issued units for $59.4m.

City Developments Limited (CDL), through its wholly-owned subsidiaries City REIT Management Pte and City Strategic Equity, has completed the acquisition of a 50% stake in IREIT Global Group for about $18.4m.

CDL also purchased 78.6 million units or about 12.4% of the total issued units in IREIT Global for $59.4m. The total consideration is about $77.8m.

IREIT Global’s current portfolio, which comprises five freehold office properties in Germany’s cities of Berlin, Bonn, Darmstadt, Munich and Münster, is valued at about $800m (€504.9m). Annualised yield is about 8.0%.

“This investment in a REIT is in line with our aim to achieve AUM of US$5b by 2023,” said Frank Khoo, CDL’s group chief investment officer.

“This deal will also enhance CDL’s diversification by increasing our presence in established European economies such as Germany, which has continued to develop physical and digital infrastructure to draw in talent and capital.”