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Deutsche Telekom unit renews lease in IReit Global's Munster South property

IREIT Global on Thursday said Deutsche Telekom's real estate leasing unit, GMG Generalmietgesellschaft mbH, will be exercising its lease extension option in the Münster South office building on the existing rental rate.

With this, on a pro forma basis, the weighted average lease expiry of the Münster Campus as at end-December 2015 will increase from 3.8 years to 4.9 years.

While IReit has executed tenancy expansions for Allianz, Yamaichi, ST Microelectronics and others, the Münster South renewal is by far the most significant leasing initiative since it listed in August 2014, it said.

The initial lease term will end on March 31, 2017, with five tenant extension options of 2.5 years each.

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As per the lease agreement, GMG has notified IReit of its intention to exercise its option and continue to occupy five of the six floors in the Münster South building.

The Münster South building has approximately 12,218 sq m of net lettable office space, of which 1,796 sq m will be available for lease to other parties from April 2017.

The lease term for the Münster North office building and its carpark will expire on March 31, 2022.

Adina Cooper, chief investment officer of IReit said: "The Münster Campus is one of the newer properties in the area and we are pleased that our tenant is paying higher than average rental rates of approximately 11 euros (S$16.85) per sq m."

The building is located in the Zentrum Nord office park, which is outside the CBD. In 2015, prime rents in the Münster CBD averaged 13.50 euros per sq m per month, while in Zentrum Nord the average rent was nine euros per sq m per month.