IReit Global bags new tenant for office space in Germany

Singapore

IREIT Global has secured a 5-year lease from a tenant for 5 floors of office space in its Munster Campus building in Germany, the real estate investment trust's (Reit) manager said on Friday (Nov 26).

The tenant is a German federal municipal association operating 35 special schools, 21 clinics and care centres, as well as 18 museums and scientific institutions for the study of cultural heritages and other cultural institutions. It is one of Germany's largest associations offering aid to people with disabilities, employing a total of 18,000 people, said the Reit manager in a press statement.

The German federal government body will take over the office space after the existing key tenant, GMG Generalmietgesellschaft mbH, vacates the property when its lease expires in March 2022.

The new lease will increase the overall occupancy rate of Munster Campus to 95.7 per cent from 64 per cent, if the existing tenant GMG were to vacate in April 2022 without a new lease.

On a pro forma basis, the weighted average lease expiry (WALE) of Munster Campus as at Sep 30, 2021, will increase from 2.9 years to 4.9 years. The WALE of IReit's portfolio would also have improved from 4 to 4.2 years.

The 5-year lease, which is secured at rental rates similar to GMG's lease, will expire on Dec 31, 2027, with 2 options to extend the lease by 5 years each.

Munster Campus is located about 2.5 km north of Munster city centre in the Zentrum Nord office park outside the central business district. It has a total lettable area of 27,501 square metres.

Units of IReit Global closed flat at S$0.635 on Monday.