Two Europe-Focused REITs Seek $600 Million IPOs In Seoul (The Economic Daily)

March 13, 2020 — Two real estate investment trusts (REITs) backed by office buildings in Belgium and France are planning to raise a combined $600 million through initial public offerings in Seoul this year, following a record $14 billion investment by South Korean funds in Europe’s commercial property market in 2019.

JR AMC Co. Ltd. received a final regulatory approval in February to list JR Global REIT, the parent of the sub REIT that had acquired the Finance Tower in Brussels for $1.6 billion in December.

It is aiming to raise about 500 billion ($415 million) from the offering on the Korea Stock Exchange, which will be the country’s first listed REIT backed by a foreign asset.

JR Global REIT is expecting to offer an annual yield of 8%, with additions of new investments in Belgium, Germany and the Netherlands in the future.

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