IREIT Global buys Grade A office building in Barcelona

IREIT Global buys Grade A office building in Barcelona
Parc Cugat, a Grade A office building located in Barcelona, Spain Image: Courtesy of IREIT Global

Singapore-listed real estate investment trust IREIT Global has acquired an office building known as “Parc Cugat” located in Sant Cugat del Vallès, Barcelona, Spain for €27.2million (approximately S$43.1 million).

The company announced Friday its wholly-owned subsidiary has entered into a public deed of sale on September 23 with Inmobiliaria Colonial, SOCIMI, S.A.(seller) to acquire the property in Barcelona and completed the acquisition on the same day.

Built in 2009, Parc Cugat is a modern Grade A freehold office building with a gross lettable area of approximately 15,510 sqm and is located within a business park in Sant Cugat del Vallès.

Currently leased to five large blue-chip companies, the property has a committed occupancy rate of 64.0% (76.5% for office space only), a weighted average lease expiry (WALE) by gross rental income (“GRI”) of approximately 6.8 years and generates an annual GRI of approximately €1.5 million as at 23 September 2021.

Pursuant to the terms of the deed of sale, the seller will provide rental guarantee for the vacant space on the ground floor for a period of approximately 15 months.

Louis d’Estienne d’Orves, Chief Executive Officer of the manager, said, “We are pleased to be able to secure this property at an attractive purchase price, owing to the strong local expertise of Tikehau Capital. This enables us to offer modern Grade A space at competitive rents to any occupiers. Its quality asset features and long leases with blue-chip tenants will complement well with IREIT’s portfolio, as we continue to execute our strategy to grow and diversify IREIT’s tenant and geographical exposure.”

IREIT currently owns four freehold office properties in Spain, two of which are located in Madrid and the other two in Barcelona.