IREIT Global gets six-year lease extension at Bonn Campus

Euro coinsPhoto by Leslie Shaffer

IREIT Global reached a deal to extend the lease at the Bonn Campus for GMG Generalmietgesellschaft mbH, a subsidiary of Deutsche Telekom, for six years, the REIT said in a filing to SGX Tuesday.

The lease on the Bonn Campus, which has GMG as its sole tenant for all of the property, will now expire in April 2029, the filing said. This followed the automatic 12-month extension of the lease in April 2022, the filing said.

The rental income of the lease will be around EUR7.3 million a year, the REIT said, adding the deal included a rent-free period of four months and leasing incentives of EUR400,000.

“We are very pleased to keep GMG in our building, a key tenant for us. This is a great outcome. The six-lease lease extension clearly demonstrates the long-term attractiveness of Bonn Campus. Our strong focus on active asset management has also paid off, as the lease extension will significantly improve IREIT’s lease expiry profile,” Louis d’Estienne d’Orves, CEO of the REIT’s manager, said in the statement.