IREIT Global lands new lease with German government body for space GMG is vacating

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IREIT Global has secured a new lease with a German federal government body which will take up the five floors of office space to be vacated by existing tenant GMG Generalmietgesellschaft mbH (GMG) at the Muenster Campus at the March 2022 lease expiry, the REIT’s manager said in a filing to SGX Friday.

The new tenant is a municipal association of 27 cities and districts from Westfalen-Lippe region, and it operates 35 special schools, 21 clinics, care centres as well as 18 cultural institutions, including museums, the filing said.

Under the new lease, the organisation will take up one upper floor in the Muenster South building from 1 April 2022, and the remaining four floors from 1 September 2022, the statement said.

The new lease is at similar rental rates to GMG’s lease and will expire on 31 December 2027, and it includes two prolongation options of five years each, IREIT said. The tenant also has an option to occupy two additional floors of the Muenster North building if space becomes available, the filing said.

“The successful leasing of all the office space at Muenster Campus well ahead of GMG’s lease expiry in March 2022 reflects the strong attributes of our property and exemplifies our strong focus on active asset management. The quality five-year lease with prolongation options secured with the new tenant will strengthen IREIT’s lease profile and income certainty,” Louis d’Estienne d’Orves, CEO of the REIT’s manager, said in the statement.

From September 2022, the Muenster Campus office space will be fully occupied with the exception of storage space in the Muenster South building’s basement, the filing said.