IReit Global to sell Barcelona office property for 24.5 million euros at premium to valuation

Vivienne Tay

Published Fri, Dec 22, 2023 · 09:29 AM

IReit : UD1U 0% Global : UD1U 0% will divest Il·lumina, an office building in Barcelona, Spain, for 24.5 million euros (S$35.8 million), its manager said on Friday (Dec 22).

The consideration is 5.2 per cent above the property’s valuation of 23.3 million euros as at Jun 30, and was negotiated on a willing-buyer and willing-seller basis.

The freehold property is located in Esplugues de Llobregat, a mixed-use office and industrial area including a technology and audio-visual office cluster 5 km away from Barcelona’s financial district.

It has a total lettable area of 20,922 square metres with 310 parking spaces, and yielded 2.4 million euros in gross rental income for FY2022.

Although it has provided recurring income since acquisition, income yield has been lower compared with the rest of the real estate investment trust’s portfolio, the manager noted.

Its short weighted average lease expiry of 2.8 years, which is lower than the portfolio average at 4.9 years, could result in higher vacancy when the leases expire, as the secondary office location of the property may pose challenges in leasing.