IREIT Global said Friday GMG Generalmietgesellschaft mbH, the sole tenant at its Darmstadt Campus, intends to vacate that property at lease expiration in late November 2022.
The to-be-vacated space is around 7.9 percent of IREIT’s total portfolio lettable area and around 11 percent of its total gross rental income as of end-September, the REIT said in a filing to SGX.
However, IREIT said it didn’t expect the lease expiration to have a material impact on the REIT’s distribution per unit (DPU) for the 2021 and 2022 financial years.
“Although the manager has been actively engaging GMG over its future plans for Darmstadt Campus and GMG has in fact moved some additional part of its operations at the property, the manager has nevertheless stayed fully prepared to market this space in the event GMG decides to vacate,” IREIT said, adding it would now begin marketing the space, including exploring a multi-let approach to broaden the tenant mix and reduce reliance on a single tenant.
Given the one-year notice, there is adequate time to re-let the property to new tenants, the REIT said.
The contribution from GMG, a wholly owned subsidiary of Deutsche Telekom, to total gross rental income has fallen to around 32 percent at end-September 2021, from 50.9 percent at end-September 2019, as the REIT has focused on acquisitions outside of Germany, the filing said. GMG also occupies space at IREIT’s Bonn Campus and Münster Campus, the filing said.
The contribution of the Darmstadt Campus to total gross rental income has fallen to 11 percent from 18.4 percent over the same period, IREIT said.