IReit Global secures 15-year anchor lease at Darmstadt Campus 

IREIT Global has secured a 15-year lease with a German federal government body for approximately 25 per cent of Darmstadt Campus, according to a bourse filing on Monday (Apr 24). Its new tenant performs construction and facility management, and will take up approximately 6,200 square metres (sq m) of office space and 1,400 sq m of storage space. The “pivotal anchor lease” will commence on Jun 1 and has two prolongation options of five years. It will generate an annual rental income of about 1.2 million euros (S$1.8 million) per annum. IReit Global’s manager is optimistic that the lease will improve the long-term stability of its portfolio performance. “Our key focus for 2023 and the immediate future is to continue to actively engage our existing tenants while attracting new occupiers to strengthen our tenant mix,” said Louis d’Estienne d’Orves, chief executive officer of the manager. The Darmstadt property, consisting of six interconnected office buildings in the south of Frankfurt, has been vacant since its sole tenant moved out end-November 2022. With the new lease, the Europe-focused real estate investment trust (Reit) will see its portfolio occupancy rise from 88.3 per cent as at 31 December 2022, to 90.3 per cent on a pro forma basis. Its weighted average lease expiry will also improve from five years to 5.2 years. The Reit will also be posting its business update for the first quarter of FY2023 on Tuesday evening. Units of IReit Global closed flat at S$0.50 on Friday..