IReit Global sees risk of losing potential lawsuit as ‘remote’, takes no action for now
Main tenant of its Berlin Campus asset is seeking a partial repayment of dilapidation costs for what it claims are ‘unjustified’ charges
[SINGAPORE] The manager of IReit Global does not plan to take any steps to mitigate the impact of a potential lawsuit from its main tenant for now, citing the chance of the case succeeding as “remote”. If the dispute proceeds, however, it could take “several years” to resolve.
The manager of the Europe-focused real estate investment trust (Reit) was commenting on the possible litigation involving Deutsche Rentenversicherung Bund (DRV), the main tenant of its Berlin Campus asset, during the briefing on Friday (Aug 8) of the Reit’s financial results for the first half of the year.
DRV is seeking a partial repayment of dilapidation costs amounting to 8.4 million euros (S$12.6 million), out of a contractually agreed 15.5 million euros, for what it claims are “unjustified” charges. The claim represents about 1.6 per cent of IReit’s net asset value and 11.1 per cent of gross revenue for FY2024.
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