For $112.2 million, IREIT Global buys 17 retail properties in France

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The Europe-focused IREIT Global has entered into an option contract to acquire a portfolio consisting of 17 French retail properties for an overall purchase price that is EUR76.8 million ($112.2 million). In a statement issued from the REIT the amount represents an approximate 1.7% discount from two independent appraisals of the portfolio that assessed the properties at approximately EUR78.1 million.

17. The retail properties are completely lease the properties to B&M France SAS, a 100%-owned company of discount store B&M European Value Retail. The properties are lettable gross area of 664,500 sq feet and an occupancy rate of 100% and an average lease term weighted with a gross rental income of around 6.8 years at March 31st 2023.

As per IREIT Global, the portfolio is expected to produce an annual net property income yield of 7.9%. Louis d’Estienne d’Orves, CEO of the IREIT Global Group and the director of the REIT, said that in the current economic environment that is characterized by the high rate of rates of inflation “the purchase is aligned with our plan of increasing the exposure of index linked assets in the established European markets, backed by a solid blue-chip tenant”.

After the acquisition IREIT will be able to boast a collection comprising the 44 commercial properties.