Europe-focused real estate investment trust IREIT Global has secured a six-month lease extension with the long-term main tenant, Deutsche Rentenversicherung Bund (DRV), at Berlin Campus.
DRV has been occupying the property for 28 years since 1995 and as at 31 March 2023, the lease with DRV at the property constitutes approximately 24.0% of IREIT’s total gross rental income.
Berlin Campus is a freehold property with a total lettable area of 79,097sqm, with DRV taking up approximately 98.8% of the lettable area at the property. The remaining 1.2% of the lettable area is leased to six other small retail/office tenants on the ground floor.
Ahead of DRV’s lease expiry on 30 June 2024, the manager has negotiated and signed a lease addendum with DRV to extend its lease further by another six months, bringing the lease expiry to 31 December 2024.
In addition, DRV will pay a revised rent that is approximately 45% higher than its current office rent from 1 July 2024 onwards.
Berlin Campus is located in Schreiberhauer Straße in the Lichtenberg district, 6km east of Berlin city centre and near the well-established Media Spree commercial centre.
Berlin Campus consists of five connected building parts with eight to 13 upper floors which are used mainly for office purposes.
Louis d’Estienne d’Orves, Chief Executive Officer of the Manager, said “We are pleased to secure this early lease extension with DRV which allows us to significantly increase our rental income while providing us time to implement our repositioning strategy. We also value the trust and confidence our tenants have placed in us and we will continue to uphold the conditions and service standards of our portfolio properties.”
Singapore-listed IREIT Global’s current portfolio comprises five freehold office properties in Germany, five freehold office properties in Spain and 27 freehold retail properties in France.
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